After breaking out, EBAY pulled back to the 61-handle support area, allowing us to unwind the puts entered into at resistance in our model portfolio. This was just in time, as EBAY reversed to push to new highs, despite a week tape. At this point, it is likely that wave (iii) of circle-iii will reach at least the 1.618 extension of wave (i) at 65.00 (red fibs). I will consider reducing risk at that time. Conversely, further pullbacks to 61 handle will have me consider adding to the long side of the trade.
By Xenia Taoubina, ElliottWaveTrader.net
