The eBay stock (NASDAQ: EBAY) traded higher on Friday, after it hit support at 70.45 on Thursday, near the upside line drawn from the low of March 5th. The rebound was stopped yesterday fractionally below the 77.90 barrier, marked by the high of August 30th, and then the stock retreated somewhat. However, as long as it stays above the upside line, we will continue aiming higher.
The latest retreat may continue for a while more, but we see decent chances for the bulls to take charge again from near the aforementioned upside line and push for another test near the 77.90 zone. If they manage to overcome it, we could see them aiming for another test near the stock’s record high of 81.30, hit on October 22nd. Should they enter uncharted territory, we would consider as the next possible resistance zone, the psychological number of 85.00.
Shifting attention to our daily oscillators, we see that the RSI, although it recently rebounded back above 50, turned down again, while the MACD, even though positive, runs below its trigger line and points down. Both indicators detect slowing upside speed and support the notion for some further retreat before the next leg north.
In our view, the outlook could turn negative upon a dip below 68.20. This will confirm the break below the upside line taken from the low of March 5th, and could initially target the low of August 9th, at 65.20, or the low of June 18th, at 63.15. Now, if neither barrier is able to halt the slide, then we may see extensions towards the low of May 27th, at 59.50, the break of which could open the path towards the low of April 29th, at around 54.80.
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