PYPL unable to break through key resistance level
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
PYPL ended Wednesday at 168.00 losing $4.79 (-2.77%), underperforming the Nasdaq 100 (-2.03%). Closing below Tuesday's low at 170.40, the market confirmed its breakout through the prior session low after trading up to $6.11 below it intraday.
Daily Candlestick Chart (PYPL as at Jun 24, 2020):
Wednesday's trading range has been $9.19 (5.39%), that's far above the last trading month's daily average range of $5.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PYPL.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 171.12 (R1), the share closed below it after spiking up to 173.48 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 159.52. The last time this happened on June 19th, PYPL actually gained 3.59% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 164.01 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 178 times, PYPL closed higher 56.74% 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 71.91% with an average market move of 2.52%.