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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.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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