EBAY pushes through key technical resistance level
eBay Inc. (EBAY) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
EBAY ended the week 0.69% higher at 55.83 after gaining $0.43 (0.78%) today, strongly outperforming the Nasdaq 100 (-0.39%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EBAY as at Oct 16, 2020):
Friday's trading range has been $1.25 (2.26%), that's below the last trading month's daily average range of $1.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EBAY.
Buyers managed to take out the key technical resistance level at 55.69 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, EBAY actually lost -1.96% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 54.86 where further sell stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for eBay. Out of 711 times, EBAY closed higher 51.20% 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 56.12% with an average market move of 0.77%.