This week, on Wednesday, the eBay Inc. stock (NASDAQ: EBAY) came under buying interest, which led to a break of its key resistance, at 36.51. This area kept holding the price from moving higher from the end of October up until the middle of this week. After that break, EBAY accelerated sharply to the upside, but failed to reach its other key resistance zone, at 39.36, which is marked by the highs of October 17th, 18th, 22nd and 23rd. For now, we will take a somewhat bullish approach, but we will wait for a break above that 39.36 barrier, in order to get a bit more comfortable with further upside.
If, eventually, we do see a strong push above the 39.369 hurdle, this would confirm a forthcoming higher high and more buyers may join in. Such a move may clear the path to the 40.86 obstacle, a break of which could set the stage for a test of the 42.00 level, which is the highest point of 2019.
Our oscillators, the RSI and the MACD, both seem to be in support of the above-discussed scenario. The RSI is above 50 and points higher. The MACD is above zero and its trigger line, while also pointing higher.
Alternatively, for us to abandon the bullish case, at least temporarily, a drop back below the aforementioned 36.51 zone would be needed. This way, a few existing investors might become a bit worried and they may liquidate some of their positions, as such a slide may increase the stock’s chances of drifting lower. That’s when we will target the 34.53 obstacle, a break of which could clear the road to the 33.53 area, marked by the lowest point of January.
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