05/11/00 eBay Inc (EBAY)
Points to watch:
eBay broke below major support levels on
Tuesday and Wednesday. On Tuesday the stock broke the 125-127
support level which had provided support on several occasions (in October
& November of last year, and January & April of this year) since
last September. Yesterday the stock moved below support at 116-117
which had previously been tested and held last August and again in
December.
Long and short term indicators continue
to deteriorate. Daily RSI and stochastics are at new lows, daily OBV is in
a downtrend, daily MACD gave a sell signal on April 13th. Weekly
RSI, OBV, and stochastics are all in downtrends.
A sell short signal was given when the
stock failed to hold support yesterday.
The next support is at 98-102.6, where
several support lines meet (Gann at 101.7, the 62% retrace of the stock's
10/98-3/00 move at 102.6). If the stock fails to hold this level, it
would find its next support at 79 and 73.
Resistance (and the stop-loss) is at
125-127 and 131.7 (50% retrace of 10/98-3/00 move)-135.
