After its sharp selloff last month, EBAY stock price could be due for a strong bounce as reversal patterns can be seen on the pair’s daily chart. For one, there is a small double bottom on the 53.00 level with the neckline currently being tested. An upside break from 56.00 could confirm the potential rally and it might last until the 59.00 mark.
Aside from that, MACD is indicating oversold conditions, which means that EBAY stock price has been long due for a bounce. The oscillator is reflecting signs of upward price momentum which might carry on until the stock price tests the previous highs at 59.00.
EBAY Stock Price Forecasts
In addition, EBAY stock price has found support at the 200 SMA (simple moving average), suggesting that the current uptrend is still intact despite the large selloff recently. A move back above the 100 SMA could confirm this bias.
As you can see from the chart, the stock price is also hovering around a key area of interest. This has served as resistance in the past and could hold as support moving forward. There have been no major news reports coming from the company though, which could mean that a bit of consolidation could be seen.
Depending on how market sentiment fares for the rest of the week, risk appetite could favor EBAY stock price rallies but there are no top-tier releases from the US economy to spark this behavior. US non-farm payrolls data is up for release next week and this might be a bigger catalyst for stock price action.
If 59.00 holds strongly as resistance, EBAY stock price might find itself retesting the 200 SMA, which is right around the bottom of the reversal chart pattern. In this case, a triple bottom could form and this is still a valid downtrend reversal signal.
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