EBAY Stock Gapped Down on Apple Pay Announcement – Sept 11, 2014

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EBAY Stock Gapped Down on ApplePay Announcement - Sept 11, 2014

EBAY Stock Gapped Down on ApplePay Announcement - Sept 11, 2014

After stalling at support near the 200 simple moving average, EBAY stock is showing increased downward momentum as price gapped down. Price previously closed near the $53.00/share level then opened lower in the latest New York trading session, starting off near the $51.00/share level.

MACD is also showing a pickup in selling pressure for EBAY stock, as the indicator is moving down from the overbought area. RSI is also on the move lower, but appears to be nearing the oversold zone and possibly indicating a price bounce.

EBAY Stock Forecast

The price gap was seen to be spurred by the announcement of Apple Pay, which aims to revolutionize online and mobile payments for owners of the latest iPhone models. This was announced during the latest Apple keynote address, which also saw the unveiling of the Apple Watch and iPhone 6 Plus.

With Apple’s planned improvement of its NFC system, EBAY’s announcement to accept Bitcoin was thrown out of the water, as investors gave more attention to having a new digital payment scheme. “Over the next three to six months,” said Gene Munster, of Piper Jaffray, “Apple Pay has the potential to disrupt the competitive mobile payments market,” and weigh on eBay’s stock price in the process.

With that, EBAY stock could move lower to the $50.00/share level or to the recent lows at $49.00/share. A bounce off these current levels might merely serve to close the gap down, as price could now find resistance at the 200 simple moving average, which is also near the 50 simple moving average.

However, a strong recovery for EBAY stock could push it back up to the previous highs near $57.00/share eventually. This might be a long stretch though, as tech traders move their funds over to Apple in the meantime.

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