PYPL ends the day indecisive
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PYPL finished Tuesday at 172.79 gaining $2.53 (1.49%), outperforming the Nasdaq 100 (0.78%). Today's close at 172.79 marks the highest recorded closing price ever. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PYPL as at Jun 23, 2020):
Tuesday's trading range has been $5.00 (2.91%), that's slightly above the last trading month's daily average range of $4.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PYPL.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on June 17th, PYPL gained 2.58% on the following trading day.
After trading down to 170.40 earlier during the day, the stock bounced off the key technical support level at 171.12 (S1). The failure to close below the support could increase that levels significance as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 158.42.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PayPal Holdings. Out of 223 times, PYPL closed higher 55.16% 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 65.47% with an average market move of 1.21%.