Last week, electronic commerce company eBay (NASDAQ:EBAY) dropped sharply after reporting earnings and issuing weaker guidance. Traders should note that the stock actually peaked on February 1, 2018 at $46.99 a share. Since that pivot high, the shares have plunged and are currently trading a $33.58. eBay is now trading below its important 50- and 200-day moving averages. This chart formation now puts the stock in a weak technical position.
Support To Watch
There are two key support levels for eBay coming up. The first level will be around the $30.00 area. This is where the 200-week moving average is located. If price comes directly into this moving average, it should serve as support when tested. The second major support level for the stock stock is around $27.50, which is where the stock was defended in November 2016. Often, stocks will find important support when a major pivot area gets retested.