PYPL closes higher for the 2nd day in a row
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PYPL ended the week 3.46% higher at 122.99 after surging $2.48 (2.06%) today, significantly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 122.99 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 121.10, the share confirmed its breakout through the prior session high after trading up to $1.90 above it intraday.
Daily Candlestick Chart (PYPL as at Feb 14, 2020):
Friday's trading range has been $2.20 (1.82%), that's slightly below the last trading month's daily average range of $2.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PYPL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 121.00 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since February 4th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 117.90 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on February 4th, PYPL actually lost -0.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for PayPal Holdings. Out of 136 times, PYPL closed higher 58.09% 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 55.88% with an average market move of 0.41%.