Looking at the technical picture of the eBay Inc. stock (NASDAQ: EBAY) on our daily chart, we can see that after hitting an all-time high in October, at 81.19, the share price started moving lower and is now trading below a short-term tentative downside resistance line taken from the high of October 22nd. Last week, the stock broke a medium-term upside support line drawn from the low of April 29th. Although there is a good indication that a further decline might be possible, we would prefer to wait for a break below the 68.20 hurdle first. That hurdle marks the lowest point of October.
If that drop occurs, this would also place the stock below the 200-day EMA, what could spook some buyers from the field temporarily. EBAY might drift to the lowest point of August, at 65.08, where a hold-up may happen. That said, if the slide continues, the share price might end up testing the low of June 18th.
The RSI and the MACD seem to be in support of the above discussed scenario, as both point lower. In addition to that, the RSI is below 50 and the MACD is below zero and the trigger line. The two oscillators show negative price momentum.
Alternatively, if the stock is able to climb back above the 73.67 barrier, marked by the high of November 26th, and then is able to overcome the aforementioned downside line, this might open the door for further advances. EBAY could rise to the 77.60 obstacle, a break of which may clear the path to the 81.19 level, which is the current all-time high.
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