As seen on the weekly chart of EBAY stock, the share price is currently testing a major support level, a breakdown from which could be a sign that a longer-term selloff is in the cards. As you can see, price is hovering below the $50.00 major psychological level, which has held as strong support in more than a year.
Do take note though that stochastic is in the oversold area already, indicating that an EBAY stock price bounce could take place. However, this may be a small bounce enough to test the nearby short-term support levels before price makes its way south.
EBAY Stock Updates
The latest turn of events haven’t been very positive for EBAY stock prices, as its head of the PayPal unit left to join social media company Facebook. David Marcus announced this week that he is looking to manage Facebook’s mobile messaging products. He remarked that his role was turning too much into a management position and that he preferred to focus on product development.
EBAY stock fell roughly 2% right after the announcement, as Marcus has paved the way for better payment integration between Ebay and PayPal. During his stint, Marcus was able to develop a mobile wallet for consumers and a point-of-sale system for retailers.
A selloff from the current EBAY stock levels could take price to the next support area at $45.00. Further declines from this region could lead to a drop to $40.00 per share.
On the other hand, a less likely bounce from the share’s current levels could lead to gains until resistance at $57.50. However, this is a less probable scenario as Marcus is set to end his term by June 27, during which EBAY stock might see steeper declines.
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