PayPal (PYPL)- Daily

PAYPAL –

News of Paypal’s venture into the world of Cryptocurrency last month sent the stock rallying 5%, as discussed in a previous article by Go Markets analyst @DeeptaGOMarkets. Since April, the share price, already on an upward trajectory, looks set to build on its momentum. The company’s unique positioning within the sector has helped them capitalise on a massive surge in online transactions during the pandemic, thus boosting overall earnings.

As we look at the daily chart from a technical perspective, there are multiple elements worth mentioning. Since April, there is a tentative bullish trendline in place, and price action has managed to find support along this line during the most recent sessions. The 100-day moving average (red line) is also acting as support since April/May.

Should this trend continue, we might see a re-test of the all-time highs around $212.00 per share or higher during the coming months. Some may view this as a potential risk/reward trade setup, given how close we are to the current trendline. 

Of course, we must also consider the alternate scenario. With volatility around the US election, there is every chance the NASDAQ, along with similar markets, could take a turn for the worst. In a situation like this, regardless of the strength of PayPal’s fundamentals, its share price remains vulnerable.  

To the downside, it is hard to look past the price-gap that occurred back in May. It’s highlighted above around the $140.00 mark, and the market is yet to close this window. That’s not to say it will close this gap, but generally speaking, that’s what tends to happen over time. If a bearish move develops, we could see price action targeting this gap. This $140 region also represents a 50% Fibonacci retracement from the $215 high to the April low. 

On the surface, PayPal including cryptocurrencies appears to be a smart move, leveraging technology in this sector. The company has remained at the forefront of the digital payment revolution for more than 20 years, so it might not be a surprise to see this latest innovation for some. For the time being, the longer-term outlook appears bullish for the payment provider.

For those interested in trading PYPL as a share CFD, Go Markets has this stock and many more, including companies from the ASX, NYSE, and the NASDAQ. 

 

 

Note: Click on charts to enlarge.

 

By Adam Taylor CTEe

.@adamt_trading

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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