EBAY shares have been on a strong rally, yet it looks like price might pull back a bit before heading any further north. Share prices have found resistance around the $56.00-$57.00/share level and may be due for a retracement to the near-term support.
EBAY shares could retreat to the 200 SMA, which has served as support recently, after price broke to the upside. Prior to that, this has also held as a support zone in April to May before prices gapped down.
EBAY Shares Outlook
MACD is already in the overbought zone, indicating that buying pressure for EBAY shares is weakening. This could lead to profit-taking, with traders looking to close out and re-enter at better prices, possibly around the $53.00/share support zone.
A deeper pullback might last until the 50 SMA, which has also acted as a dynamic inflection point for price action in the past. However, the indicator looks ready to make an upside cross from the 200 SMA, adding confirmation that EBAY shares could be in for more long-term gains.
RSI is starting to move down as well, reflecting how selling momentum is present and might be enough to take EBAY shares down to the $53.00/share support area. Near-term support is also located at the $52.00/share level.
News that a judge approved the DOJ settlement with EBAY regarding poaching employees from other tech companies could have a significant impact on EBAY shares trading in the upcoming New York session. Apart from that, news that fund manager Terry Smith invested in EBAY could draw more buying interest.
With that EBAY shares could be poised to test its recent highs at $57.00/share or perhaps create new ones around the $60.00/share region. Risk sentiment appears to be in support of more gains, as higher-yielding assets have been drawing increased support recently.
To contact the reporter of the story: Jonathan Millet at email@example.com