eBay Charts: Wait for a Retrace

Let's take a look at eBay(EBAY Quote), another one of those Internet companies that was left for dead.

Having traded as high as almost $60 back in late 2004, eBay has had a series of lower highs and lower lows ever since -- the classic definition of a downtrend. There are some indications, however, that a change may be in the offing on a long-term basis.

What you can see in the chart is that the move off the March lows has attacked the swing lows from 2006 and 2008 with a reasonable amount of volume. Although the volume hasn't swollen to the levels yet to remove that supply line, it clearly is the best attack against the swing lows since this long decline began.

The trend on the long-term time frame remains bearish, but the possibility of a change over the next few months now appears possible.