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Technical Analysis – eBay

Ebay 24/04/2018 | EconAlerts

eBay stock retreats after touching 43.00 key level; bullish in long-term.

eBay stock price has been retreating in the past two trading days following the strong pullback on the 43.00 handle on Friday. When looking at the bigger picture the price has been trading higher since June 2016 after its rally from 22.29 support level. In the weekly timeframe, the 50-simple moving average (SMA) is ready for a bullish cross with the 200-SMA, signaling further gains.

Turning our attention in the daily timeframe, the price touched the 40-SMA, which is acting as strong support barrier, while the 20-SMA is reversing to the upside. However, the technical indicators are signaling for a bearish retracement. The RSI indicator is moving south towards the threshold of 50 and the %K line of the stochastic oscillator completed a downward cross with the %D line.

If the 40-day SMA near the 41.48 price level fails, then the focus would shift to the downside again towards the 20-day SMA around 40.30. If this barrier is breached, it would increase bearish pressure and the stock would be on the path towards the 38.80 support level.

If price action remains above the 40-SMA, there is scope to test the 43.00 psychological level. Clearing this key level would see additional gains until the 44.30 resistance barrier, taken from the highs on February 26 and March 8.

Ebay 24/04/2018 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: XM

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