Ebay Inc. (EBAY) has established a downtrend over the past few months and prices could work still lower in the weeks ahead. Lower lows and lower highs and bearish technical indicators are all aligned to the downside. Let's see how far down we might be headed in the weeks ahead.
In this daily bar chart of EBAY, below, we can see that an uptrend was in place from July to May. In June prices broke their May lows and established a new pattern of lower lows and lower highs. Prices are below the declining 50-day moving average line and the longer 200-day line has turned from up to flat. The 50-day average also fell below the 200-day line for what is commonly called a dead cross. The daily On-Balance-Volume (OBV) line made a peak in April and has also established a downtrend signaling increased selling. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved below the zero line in late March for a sell signal.
In this weekly bar chart of EBAY, below, we can see a weak price picture. Prices are below the cresting 40-week moving average line. The weekly OBV line shows a peak back in May 2017 and it has diverged bearish since then. This indicator is signaling that sellers of EBAY have been more aggressive for about a year. The MACD oscillator on this longer time frame has just moved below the zero line for an outright sell signal.
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In this Point and Figure chart of EBAY, below, we can see a downside price target of $31.33.
Bottom line: EBAY has weakened in the past few months and looks like it can down to the $31-$30 area. Wait for a better buying opportunity in the weeks and months ahead.