Bidders Abandon Ebay

Ebay (EBAY) completed a 1 year rectangle top by closing below 49.50. A previous post in July mentioned the same rectangle but much shorter in duration. The stock morphed, continued to trade inside the rectangle and failed to breakout to the upside. Furthermore, the rectangle pattern coincides with a multi year resistance zone in red from late 2004. Implied target for this pattern is $42.

 

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