According to Lang's research, eBay's daily chart has a lot of noise, making it hard to interpret. The chart includes both the deadly head-and-shoulders pattern as well as the bullish reverse head-and-shoulders pattern and several erratic movements further muddying the waters. What Lang noted, however, is a bullish crossover in the MACD momentum indicator as well as a stock that's now above both its 50- and 200-day moving averages.
The weekly chart is easier to read. After a sizable rally in 2012, eBay has been trading sideways and consolidating, noted Lang, which is a good thing. The MACD is once again preparing to cross over to the upside, something that boded well for the stock in 2012.
Cramer said he agrees with the bullish technicals. He said more than half of eBay's profits stem from PayPal, which makes the company more of a payment processor than an commerce play. Trading at just 17 times earnings with a 15% growth rate, Cramer said eBay remains cheap with a positive outlook.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer told viewers that with the European economy close to a bottom, the time is now to buy shares of GE.Cramer explained that so far the markets have not seen any solid evidence that there is indeed a bottom in Europe. But the anecdotal evidence is piling up, which bodes well for GE, which plays in many industries from aerospace to healthcare to power generation. As large fund managers look for ways to get into Europe on the cheap, Cramer said GE will be the logical choice because the stock has a large float and has yet to make its move. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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