EBAY Stock Testing Key Resistance Zone – July 28, 2014

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EBAY Stock Testing Key Resistance Zone - July 28, 2014

EBAY Stock Testing Key Resistance Zone - July 28, 2014

EBAY stock has been in a steady downtrend for quite some time, yet it has managed a strong rally for the past couple of months. All this could prove to be a market correction though, as the pullback is encountering resistance at the 200 simple moving average, which has acted as a dynamic inflection point for the stock price.

It appears to be holding as resistance at the moment, as it lines up with a broken support area, which has held in February and April, before price gapped down in early May this year.

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EBAY Stock Forecast

A selloff from the current levels might last until the potential support at the 50 SMA, which has also acted as short-term support or resistance for EBAY stock. MACD is still moving higher, indicating that buying pressure is still present. If it’s strong enough, it might lead to an upside break from the $53/share levels.

A strong selloff might lead to a drop below the 50 SMA and all the way down to the previous lows at $49/share. Near-term support is also located at the $50/share psychological level.

News of the first Superman comic going on sale on Ebay could lead to gains for EBAY stock, as this could potentially drive interest and higher revenue for the online marketplace. Bear in mind that sentiment has shifted for this stock earlier in the year when a security risk plagued the site.

In other news, the company is offering $3.5 billion in debt to help fund general operating activities. This bond sale will close today, yet company executives clarified that the company is not undergoing cash flow problems. In fact, company profits are up $676 million in the second quarter of the year, leading to strong gains for EBAY stock when the earnings report was released earlier this month.

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