eBay Stock is Approaching to the All-Time High – What May Happen Next?

eBay Stock is Approaching to the All-Time High – What May Happen Next?

 Published: June 3rd, 2021

In the last 12 months, eBay revenue showed a massive growth of 45% that pushed the P/E ratio above the single digit. Although the current P/E ratio is below the competitors’ level, it has a higher possibility of making a better-than previous result based on the recent growth forecast.

The COVID-19 pandemic provided a positive impact on eBay investors due to the increase in online shopping. Moreover, Jamie lannone’s position as eBay CEO restructured the business.

The shift in business procedure influenced analysts’ to change eBay’s growth forecast. In Q1, eBay reported the revenue at $3.0 billion, up by 42% from the previous quarter. The GAAP net income from continuing operation came at $569 million with a $0.82 per diluted share.

Following the growth in revenue and EPS, eBay generated $938 million of operating cash flow and $855 million of free cash flow from continuing operations. All of these developments are signs of positive price development in eBay stock.

Let’s see the future price direction from the eBay Stock technical analysis:

eBay Stock Daily Chart

eBay Stock Daily Technical Analysis 3 June 2021

eBay stock started a strong bullish pressure since the beginning of 2021 that pushed the price up from $50.00 to $64.00 level on a single swing. Later on, the price corrected lower and created a higher low at $51.50 level before making the all-time high at $65.11. After that, the price came lower but failed to break below the $51.50 swing low.

In the above image, we can see the daily chart of eBay Stock where the price is trading within a long-term bullish trend. In the most recent candles, the price consolidated at $60.00 area and broke above the intraday swing levels yesterday. The bullish breakout with a daily close above the dynamic level of 20 EMA signifies that buyers’ are more robust in the price after order building in May 2021.

Moreover, MACD Histogram is bullish and making new highs, pointing out buyers’ presence to the price. Based on this structure, the price may move higher above the $65.11 level in the coming days.

eBay Stock H4 Chart

eBay Stock H4 Technical Analysis 3 June 2021

According to the Ichimoku Kinko Hyo on the H4 chart, the price breaks above the Kumo Cloud with an impulsive bullish pressure. Moreover, in the future cloud, Senkou Span A is above Senkou Span B and heading up. Therefore, based on the market context on H4, the upcoming trend probability is bullish.

In the above image, we can see that the price consolidated above the Kumo Cloud area and tried to move down, but the bearish rejection from dynamic Kijun Sen took the price higher with an impulsive pressure.

Moreover, Chikou Span is above the price, and MACD Histogram is bullish despite a hidden divergence in MACD. Therefore, the price may correct lower before pushing up, and further rejection from dynamic Kijun Sen may take the price higher towards $70.00 psychological level.

eBay Stock H1 Chart

eBay Stock H1 Technical Analysis 3 June 2021

EBayStock breaks above the $62.00 resistance level in the intraday chart with a massive bullish breakout. Therefore, as long as the price is trading above the $62.00 level, the short-term market sentiment will be bullish.

In the above image, we can see that the price bounced off from dynamic 20 EMA and vwap level with an impulsive bullish pressure but failed to show a strong momentum above the intraday high volume level at $63.27. Therefore, the price has a higher possibility of coming lower towards the $62.00 level before making another bullish leg upside.

Moreover, ADX is bullish and moving up from the potential 20 level, which is a sign of strength in the current bullish pressure. However, if the price comes lower below the dynamic vwap level with a strong bearish candle, we may expect a bearish pressure to the price with the target of $59.08 level.

Should You Try Buying eBay Stock?

As of the above discussion, we can say that eBay stock has a higher possibility of continuing the bullish trend and making a new all-time high following the recent growth in earnings. In that case, any daily close above the $64.11 may take the price higher above the $70.00 psychological level in the coming days.

On the other hand, a strong bearish H4 close below the Kumo Support of $59.08 may alter the current trend and take the price lower towards the $51.50 swing low.

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