Day Trading Post #9

Yesterday, EBAY was called out on Daytradingradio.com, so I eyeballed the chart and took a quick day trade in it yesterday. Well, late last night I checked out the chart for Ebay on the daily chart and liked what I saw. The stochastics are almost at a point of being oversold and Ebay is bottoming out at its 52 week low, or very close to it.

So, based on the stocastics, and the candlestick that formed yesterday on the daily chart which looks like a hammer to me, I decided I might take ebay long. Also, on the 15 minute chart, premarket and around the close of yesterday, ebay was bouncing off the 20EMA. So, I put a limit order out to buy 200 shares at $11.65 (which also happens to be todays pivot point on the intraday chart)

I got filled at the open as EBAY popped down, and I am holding my 200 shares now for a swing trade. Things are looking well. My plan is to hold to the 50EMA because on the daily chart it looks as if we have broken the 20 EMA, then broke the 50EMA and then turned around. So, if I see some hesitation around the 20EMA on the daily, I will scale out. Otherwise I plan to scale out at the 50 EMA, see if we can't break through, and then if not, take profit if we come back to the 20EMA.

Thats the plan. Also, I'd like to see it fill the gaps it made on its way down. Here is the daily chart I'm referring to: