Ebay'stock presents strong arguments to initiate a buying position.

Indeed, sales growth of the company is very encouraging with an increase of 16% between 2012 and 2013. Moreover, a net margin of 18% for 2013 shows a great level of profitability. Finally, financial situation is healthy with a cash reserve of $16.3 billion for this year.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 51.35 area, corresponding to a bullish trend line and the short term support, should stop this trend and allow a technical rebound towards USD 54.4. Furthermore, technical indicators show a significant oversold condition.

Therefore, the proximity of the USD 51.35 support is an opportunity to take a long position in eBay. The first goal is a return in the USD 54.4 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.