Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
EBAY stock price is up by 5.72% on a YTD basis. It did not perform well in 2023 and mostly traded into a range.
eBay stock price tried multiple times to break the higher range and expand upward. However, due to the strong presence of sellers, prices faced rejection and reverted down.
The 50-day and 200-day EMA slopes sideways indicating that prices lack direction. It continues to consolidate in a range and forms a strong base near $42.00.
Previously, the sellers had also tried multiple times to pull the price below $42.00. Luckily, the buyers remained active and succeeded in defending the support.
In the past quarter earnings, Ebay Inc. beats the analyst estimates. Despite this, the stock price reacted negatively and fell 10.53% in a single day.
It seems like some investors began to sell EBAY shares when it reached the supply zone. Therefore, Buyers have to break the 50.00 hurdle with a strong volume to regain their confidence.
EBAY’s stock price closed the previous session at $44.56 with an intraday rise of 0.45%. The market capitalization stands at $23.71 Billion.
EBAY Stock Price May Break the Higher Range Soon
EBAY stock price is in a consolidation phase forming a strong base. It is likely to break either side of the range in the coming few months. Hopefully, the upside range breakout will be visible which will trigger the next phase of the rally.
The financials of the company are good and stable. In the June 2023 quarter, the operating cash flow increased by 71.46%, and the Net cash flow was positive. It shows that the company is generating enough cash and is not dependent on external financing.
The analysis suggests EBAY stock price is at some attractive levels and is good for long-term investment.
EBAY Stock: Option Chain Analysis
The option traders in the EBAY stock are also active. The prices are in range so strategies like strangles are deployed.
The next monthly expiry is on Oct 20, 2023. The highest CALL OI buildup is in strike of 47.50 which holds 4676 contracts. The 2nd highest is at 45 which holds 3933 contracts.
Whereas, the highest PUT OI buildup is in a strike of 45 which holds 4540 contracts. Therefore, option chain data reveals that $45 will become support in the coming months and $47.50 will act as a hurdle.
Conclusion
EBAY stock price continues to trade in the range. It formed a strong base near $42.00 so the downside risk is low. The technical analysis suggests, EBAY stock is at attractive levels and looks good for long-term investment.
Technical levels
- Resistance levels: $49.00 and $52.00
- Support levels: $42.00 and $39.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/17/ebay-stock-price-analysis-ebay-good-for-long-term-investment/