Will eBay Test its All-time High Again?

The eBay Inc. (NASDAQ: EBAY) stock traded north on Tuesday, after hitting support at 59.00. On Wednesday, it opened with a positive gap, but hit resistance at 62.65 and then, it retreated somewhat. Overall, the stock continues to print higher peaks and higher troughs above the upside support line drawn from the low of March 5^th, and thus, we would consider the short-term outlook to still be positive.

The current retreat may continue for a while more, but investors may find interest in the stock near the pre-mentioned upside line. If so, we could see a rebound back near the 62.65 territory, the break of which may extend the recovery towards the 64.80 zone, which is the stock’s all-time high, and was hit on February 4^th.

Shifting attention to our short-term oscillators, we see that the RSI turned down after hitting resistance slightly below 70, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. Both indicators detect slowing upside speed and support the case for some further retreat before the next leg higher, at lest until the short-term upside line.

Now, in order to start examining the case of a larger correction, we would like to see a dip below that upside line, as well as below Tuesday’s low of 59.00. This may trigger declines towards the low of March 25^th, at 57.00, the break of which may extend the slide towards the 55.00 zone, or slightly lower, near another upside support line, taken from the low of November 10^th.