PYPL dominated by bulls lifting the market higher throughout the day
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PYPL ended Thursday at 100.63 gaining $4.92 (5.14%) on low volume, underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 100.42, PayPal Holdings confirmed its breakout through the previous session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (PYPL as at Mar 26, 2020):
Thursday's trading range has been $5.29 (5.49%), that's below the last trading month's daily average range of $7.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PYPL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 98.06 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, PYPL actually lost -15.82% on the following trading day. Prices are trading close to the key technical resistance level at 103.72 (R1). After having been unable to move lower than 95.27 in the prior session, the market found buyers again around the same price level today at 95.64.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for PayPal Holdings. Out of 250 times, PYPL closed higher 56.80% 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 62.80% with an average market move of 0.94%.