PYPL pushes through Thursday's high
PayPal Holdings Inc. (PYPL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PYPL ended the week 3.68% higher at 150.86 after gaining $2.64 (1.78%) today, notably outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 150.74, the share confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (PYPL as at May 22, 2020):
Friday's trading range has been $3.64 (2.46%), that's slightly below the last trading month's daily average range of $4.03. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PYPL. Prices continued to consolidate within a tight trading range between 145.22 and 151.08 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on April 20th, PYPL actually lost -4.13% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock found buyers again today around 147.36 for the third trading day in a row after having found demand at 148.04 in the prior session and at 147.90 two days ago.
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 151.08 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 59 times, PYPL closed higher 64.41% 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 64.41% with an average market move of 1.10%.