eBay Inc. (EBAY) NewsBite - EBAY Up After Tuesday's Market Rally

Posted on Wednesday, March 12, 2008 10:46 AM

eBay (EBAY) opened at $26.44. So far today the stock has hit a low of $26.38 and a high of $26.80. EBAY is now trading at $26.96, up 0.55 (2.08%). After hitting a one-year high of $40.73 in November, the stock hit a one-year low of $25.33 last week. Shares of EBAY are trading a higher this morning after the market posted a strong rebound on Tuesday. Investors are hoping this is not a one-day wonder and that the market can hold on to yesterday's gains. Judging by today's opening, EBAY and the rest of the market might be able to hold on. Technical indicators for EBAY are bearish but improving slightly, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged play on this stock, consider a July bull-put credit spread below the $22.50 range. EBAY hasn’t been below $25 at all in the past year and has shown support around $26 recently. This trade could be risky if the US economy continues to worsen, but even if that happens, this position could be protected by the support the stock might find around $26, where it has bottomed twice over the past month. [LHF- Seven Summits Strategic Investments NewsBite]