Ebay stock looks ready for more gains, as price is making another attempt to break past the major resistance around $58/share. This has held in the past year but an upside break might take place soon if market sentiment stays positive.
Risk appetite has picked up in the past few trading days after the Greek government was able to secure a four-month extension on its bailout and waive further austerity measures for this year. The anti-austerity government has yet to pass its list of economic reforms for the EU’s approval, although these are likely to get the thumbs-up and allow Greece to stay in the euro zone for now.
Ebay Stock Forecast
More positive developments could mean a convincing upside break from the range and further gains for Ebay stock. Upcoming event risks for this move include Fed head Janet Yellen’s testimony in Congress, as this might shed light on the US central bank’s future policy moves.
Hawkish remarks could lead to overall gains for US equities, including Ebay stock and other strongly-performing shares. However, cautious comments could mean another leg lower and a potential test of the nearby support at $53/share.
This support area lines up with the 200 simple moving average, which has held as a dynamic inflection point for the shares. Bear in mind that the shorter-term 50 SMA is currently moving above the longer-term 200 SMA, which means that an uptrend is likely to take place.
Ebay’s new deal with Woolworths in Australia could mean more revenue and a larger market share for the online marketplace, as this would allow customers to pick up their purchases from the retailer’s branches. “The traditional retail model is evolving and the lines between online and offline (are) blurring,” saideBay’s merchant development director, Hamish Moline. “Consumers now expect a more bespoke experience that meets their needs.”
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