EBAY breaks back above 200-day moving average
eBay Inc. (EBAY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EBAY finished the week 5.36% higher at 38.14 after gaining $0.95 (2.55%) today, strongly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 38.14 marks the highest recorded closing price since October 23, 2019. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EBAY as at Feb 14, 2020):
Friday's trading range has been $0.90 (2.4%), that's slightly below the last trading month's daily average range of $1.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EBAY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close back above the 200-day moving average at 37.72 for the first time since February 6th. When this moving average was crossed above the last time on February 6th, EBAY actually lost -4.74% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 39.25, upside momentum might speed up should eBay be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for eBay. Out of 454 times, EBAY closed higher 58.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.71% with an average market move of 0.96%.