EBAY Stock Ready to Resume Uptrend? – Sept 9, 2014

EBAY Stock Ready to Resume Uptrend? - Sept 9, 2014

EBAY Stock Ready to Resume Uptrend? - Sept 9, 2014

After its recent selloff since April until June, EBAY stock appears to have bottomed out and is indicating additional buying momentum. Price has climbed steadily in the past three months and appears to be making a small pullback before heading further north.

EBAY stock has recently jumped to the $57.00/share area before retreating. It is nearing support at the 200 simple moving average, which has acted as a dynamic inflection point for price action. A retracement to the $53.00/share area could take place before EBAY stock regains ground, although a bullish candle can already be seen on the latest bounce.

EBAY Stock Forecast

MACD is reflecting a buildup in selling momentum for now though, as the indicator has just turned from the overbought area and is heading down. This could mean that EBAY stock might dip a little lower before resuming its climb. In that case, the shorter-term 50 SMA might hold as near-term support for any small dips.

Bear in mind that the 50 SMA is showing indication of crossing above the 200 SMA, which could confirm that an uptrend is in the cards. Price is stalling at an area of interest as well, which might also hold as support for the time being. A bounce from these current levels could take EBAY stock back to its latest highs near the $57.00/share level or higher until the $60.00/share psychological mark.

News that EBAY’s PayPal unit is starting to accept bitcoin payments was received positively, adding opportunities for virtual currency transactions. “We’re announcing PayPal’s first foray into bitcoin,” Bill Ready, the chief of EBay’s Braintree unit, said at Techcrunch’s Disrupt SF conference yesterday. “Over the coming months we’ll allow our merchants to accept bitcoin. On the consumer side it will be a sleek experience.”

This could potentially keep EBAY stock supported in the near-term as the online selling website could draw more customers.

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