November 6 Chart of the Day - eBay
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eCommerce provider eBay (EBAY) connects millions of buyers and sellers in 190 markets around the globe. Technology has always been a driver of their business and in 2021 they hired their first Chief AI Officer.
But since then the company's stock has fallen from its $81.19 all time high (ATH) to below $40 last year with a quick respite to the $50 area before resuming its drop.
On the monthly chart we can see the sharp fall through previous support/resistance levels as if they weren't even there.
Since 2020 price has been flirting with a 13+ year old trend line with a few fake break downs below. But can price continue defending this trend line?
Down on the weekly chart we can see a recent retest and bounce a couple of weeks ago.
Trading at $40.30 earlier today the eBay bulls are in jeopardy of dropping the ball to the bears so what that tells us is that price has a very important decision to make in the coming weeks / months.
If price breaks and holds below $35 then $33 - $30 could be the next stop down. If that area doesn't hold then last chance for the bulls could be around $23.68.
However, if the bulls step in sooner the next upside targets could be $45 - $50 area before facing more overhead resistance.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
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