eBay Inc. (NASDAQ: EBAY) traded higher on Thursday, after it hit support at 49.50. However, the recovery stayed limited near the 55.70 zone, marked by the low of January 28th, and then, the stock hovered slightly below that line on Friday. Overall, the price structure continues to suggest lower highs and lower lows below the downside line taken from the high of October 25th, and thus, despite the latest rebound, we will consider the short-term outlook to be negative.
We believe that market participants may start selling again from near the aforementioned downside line, and perhaps allow another slide near the 49.50 zone. A clear break lower would confirm a forthcoming lower low and may extend the fall towards the low of November 10th, 2020, at 45.40. If that barrier is not able to withstand the pressure, then we could experience extensions towards the low of May 21st, 2020, at around 42.20.
Taking a look at our short-term oscillators, we see that the RSI lies below 50, slightly above 30, but points flat, while the MACD, although below both its zero and trigger lines, has started to turn east as well. Both indicators detect slowing downside speed, which makes us careful over some further recovery before the next leg south.
Now, in order to abandon the bearish case and start examining a stronger recovery, we would like to see a clear break above 63.15. This may be the confirmation of a potential break of the downside resistance line, and thus, investors may get encouraged to climb towards the 68.10 zone, marked by the inside swing low of October 4th. Slightly higher lies the 70.45 hurdle, marked by the inside swing low of October 28th, the break of which could see scope for advances towards the 73.65 zone.
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