eBay Inc. (NASDAQ: EBAY) corrected lower after hitting a record high on August 30th, at 77.90. Overall, the stock continues to trade above the upside support line drawn from the low of March 5th, and thus, we will consider the overall picture to be positive.
The current retreat may continue for a while more, but market participants may jump into the action from near the 71.70 level, marked by the low of August 23rd, or near the aforementioned upside support line. If so, we could see another test near the record high of 77.90, or even the round number of 80.00, the break of which could pave the way towards the next psychological print, at around 85.00.
Both our daily oscillators detect slowing upside speed enhancing the case for the current retreat to continue for a while more, perhaps until the upside support line. The RSI turned down after it hit its 70 line, while the MACD, although positive, turned down and fell below its trigger line.
Having said all that, in order to abandon the bullish case, we would like to see a clear break below the 63.15 barrier. The share price would already be below the upside line and may slid towards the low of May 27th, the break of which could carry extensions towards the 54.80 territory, marked by the low of April 29th. The next barrier to consider as a support is at 51.50, defined by the low of March 5th.
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