PYPL closes within previous day's range after lackluster session
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
PYPL finished Tuesday at 108.20 edging higher $0.06 (0.06%) on low volume, slightly underperforming the Nasdaq 100 (0.34%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PYPL as at Apr 16, 2019):
Tuesday's trading range has been $1.22 (1.12%), that's far below the last trading month's daily average range of $1.80. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PYPL.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 109.00 (R1). After having been unable to move above 109.00 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 108.80. The last time this happened on April 11th, PYPL actually gained 1.90% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 109.00 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 211 times, PYPL closed higher 58.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.09% with an average market move of 1.08%.