eBay is ranging

Almost throughout the whole of last year, the eBay Inc stock (NASDAQ: EBAY) had been on a down-move, which forced it to close 2018 in the red. But the share price found its good support near the 26.30 hurdle in the end of October, from which it rebounded. But then, in the end of December, the stock re-visited that area and even slightly overshot it, finding another good floor at around the 26.00 level. From there onwards, EBAY continued to climb higher, but around mid-February, the stock started moving sideways and continues to do that till this day. The price is stuck roughly between the 35.50 hurdle and the 38.92 barrier, which means that we will remain somewhat neutral for now and wait until we see a clear break and a close of a daily candle outside of that range. Only then we will be able to consider a further directional move.

If the stock travels higher and closes above the upper bound of the aforementioned range, at 38.92, this might attract more buyers and the price could rise to test the 40.85 hurdle, marked by the high of June 7^th. We may see EBAY stalling around there, or even retracing back down a bit. But if the stock remains above the upper side of that range, this could be a good opportunity for more investors to step in again and drive the price above the 40.85 barrier, aiming for the 43.00 mark, which is the high of April 20^th, 2018.

Alternatively, a price-drop below the lower side of that range, at 35.50, could spook the buyers for a while, as such a move might open the door to further declines. We will keep a close eye on the 34.74 obstacle, which, if fails to withhold EBAY from moving lower, could lead to a bigger fall. This is when we will target the 32.76 hurdle, or the 32.32 level, marked by the low of January 24^th.

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