Hawk, I am not replying to argue the Ebay EW.
I am replying because this is a market laboratory, and one aspect of that is TA.
I use a lot of long term charts. I do not use stoichastic much, only a little if I am on the road and have to use Stockcharts. I use momentum, Rsi, WM's% R and a special MACD; and I use these over and over and over again. I do this rather than hopping around, because I think it helps to become better that way.
This is the Ebay monthly, with my TA parameters.
What I look for in the monthlies is to see if they jive with the EW pattern I propose, and if they do it gives me enough confidence to proceed with the EW pattern.
I think the monthly patterns, that I use, are showing a very bullish set-up. If the EW proposed is correct it will be a long and powerful move, thus the monthly TA parameters have to at this juncture be in a slight uptrending position and at the same time leave room for a lot of continuation up. I like what I see here, in particular the MACD. The most important aspect of the latter is the red line. It has broken its downtrend, clearly, and is uptrending, about to do a zero line cross. One could of course argue it could turn down again at any moment.
I have not shown the NDX. There is something going on there as well ... more later maybe.
If there is a big move up in tech and Ebay I think it will be a spell yet before the big lift-off. The markets have to spend more time to deceive us.
By the way I hold no tech positions at this moment, but am watching and plotting with intent interest. If the markets hold it is my opinion leadership will be assumed by tech, and the leg up that follows (in tech) will be quite powerful. We will keep following this and continue to post a few charts. The implications for the next major leg, up or down, have to shake out here during the first half of this year. There are also some other key tech charts to look at, beside the indices. |
