Prices of EBAY shares could be in for more declines if it breaks the last major support area as seen in its daily time frame. At the moment, the pair is trading around the 200 simple moving average (SMA) on the daily chart with MACD indicating oversold conditions.
Take note though that MACD hasn’t crossed upwards yet though, which suggests that there is enough selling momentum left. It appears that price is already breaking below the 200 SMA, but that depends on whether the latest daily candle closes below it or not.
EBAY Stock Price Forecasts
A break below the current support area could mean a selloff until the next visible support zone around the 51.00 mark or until 50.00. On the other hand, a bounce could lead to a move up to the previous highs at 59.00 but that seems like an unlikely scenario.
EBAY and Amazon have launched new e-stores lately but these ventures haven’t gotten much buzz. The e-commerce company has seen a decline in share price after failing to innovate and introduce successful market products in the past few months. Stiff competition has also weighed on EBAY share prices.
Take note as well that prices have fallen below a more stable support level around 55.00, which previously acted as resistance. This is also in line with the 50 SMA, a reliable inflection point when it comes to trading stocks. This indicates that sellers are very strong and that they could push for a deeper selloff in this stock.
A downtrend could be confirmed once the shorter moving average crosses below the longer moving average. In this case, if the blue line (50 SMA) moves below the red line (200 SMA) then EBAY share prices might be in sell mode for the near term.
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