EBay (EBAY) - Get Report closed out last week with a 3.5% gain with the help of a nice bump in volume.  Only two stocks in the S&P 500 -- Illumina (ILMN) - Get Report and AES (AES) - Get Report -- performed better.

This powerful breakout-type move drove shares past the December peak, leaving behind a very solid support zone in the process. EBay still has a big overhead challenge, but investors should take a more bullish view of the stock in the near term. A run past the 2016 peak now appears very likely.

In early November, eBay began to show signs of downside exhaustion after its devastating earnings breakdown on Oct. 20 began to run out of steam. The stock regained its footing near a major support zone, mounted a slight bounce, then successfully retested this key area on Dec. 2. The stock rallied off this zone again before entering a narrow consolidation pattern in mid-December. Friday's surge ended the three-week consolidation with an impressive upside move.

Patient investors should now consider eBay a low-risk buy on weakness. Solid support is now in place near the $30.50 area. On the downside, a close back below last week's low of $29.50 would indicate more sideways action is ahead before the stock enters a new rally phase. On the upside, a big challenge for the stock will be the $32 area. To take out this level, eBay bulls will have to drive the stock past very heavy resistance near the Oct. 20 breakdown gap. Once this area is convincingly taken out, eBay will have room to run.

Of note, eBay is scheduled to report its fourth-quarter results on Jan. 25.

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This article is commentary by an independent contributor. At the time of publication, the author was long EBAY.