EBAY breaks back below 100-day moving average
eBay Inc. (EBAY) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
EBAY ended Monday at 53.34 losing $0.45 (-0.84%), but still outperforming the Nasdaq 100 (-1.61%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EBAY as at Oct 26, 2020):
Monday's trading range has been $1.66 (3.1%), that's slightly below the last trading month's daily average range of $1.69. 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.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 5th, EBAY lost -4.08% on the following trading day.
The stock closed back below the 100-day moving average at 53.76. After having been unable to move lower than 52.47 in the previous session, eBay found buyers again around the same price level today at 52.28.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 53.95 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for eBay. Out of 220 times, EBAY closed lower 54.09% of the time on the next trading day after the market condition occurred.