Ebay Stock Approaching Key Resistance – Nov 21, 2014

0
155
Ebay Stock Approaching Key Resistance - Nov 21, 2014

Ebay Stock Approaching Key Resistance - Nov 21, 2014

Ebay stock has been on a strong climb recently, allowing the share prices to move closer to this year’s highs. At the moment, Ebay stock is trading around the $55/share levels and is within the vicinity of the resistance at $57/share.

The moving averages are moving sideways, reflecting range-bound market price action. This could be a sign that the previous highs would hold as resistance should these be tested within the month.

MACD is indicating a potential selloff though, as the indicator is starting to turn lower. RSI is also moving down from the overbought area, suggesting a potential return in selling pressure for Ebay stock.

Ebay Stock Forecast

There may be enough bullish momentum to catch a move from the current levels until $57/share, assuming that risk sentiment doesn’t change drastically. After all, US equities have been supported by upbeat Fed biases, as the central bank remains on track to tighten monetary policy sometime next year.

Bear in mind though that Ebay shares could fall along with US equities and higher-yielding assets if geopolitical tensions continue to take hold. This could lead to a premature drop from the current levels until the SMAs or the next support zone around $53/share. This level has held as an area of interest after all.

News that the company is revamping its local delivery processes lifted Ebay stock early in the week, as the move aims to aid smaller merchants that make up the bulk of the e-commerce giant’s sprawling base of marketplace sellers. “The big play in the U.S. has been around buy online, pick-up in store,” Tom Allason, head of eBay Local, said Wednesday.

With that, Ebay stock could continue to draw more support in the longer run should the company’s efforts prove to generate more revenue and profits. This could even lead to a break of the previous highs.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com