Leading e-commerce company, Ebay Inc (EBAY), has been very weak recently. The stock topped out on July 13th, 2020 at $61.06 a share. Since that high pivot, the stock has been making a series of lower highs on the charts. This pattern must be viewed as a sign of weakness for EBAY stock and indicates lower share prices are ahead. Currently, the stock is holding the $48.00 level which was also defended in mid-September. A break below this key support should indicate another decline for EBAY shares.
Traders should note that EBAY stock has major chart support around the $40.00 level. This support area is where the stock broke out in early May 2020. It is also a level where the 100-week moving average is located. This combination should provide excellent support when tested. I will be looking at EBAY on the long side at this important $40.00 support area.
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