EBAY slips to lowest close since June 25th
eBay Inc. (EBAY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EBAY ended Wednesday at 50.42 losing $1.36 (-2.63%), underperforming the Nasdaq 100 (-1.67%). Today's close at 50.42 marks the lowest recorded closing price since June 25th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 51.64, eBay confirmed its breakout through the previous session low after trading up to $1.35 below it intraday.
Daily Candlestick Chart (EBAY as at Sep 16, 2020):
Wednesday's trading range has been $1.96 (3.79%), that's slightly above the last trading month's daily average range of $1.69. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EBAY.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 100-day moving average at 50.88 for the first time since April 9th. When this moving average was crossed below the last time on March 11th, EBAY lost -5.17% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for eBay. Out of 140 times, EBAY closed higher 55.00% 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 57.86% with an average market move of 0.83%.