PYPL runs into sellers again around 172.77
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
PYPL finished Thursday at 172.50 gaining $4.50 (2.68%), significantly outperforming the Nasdaq 100 (0.99%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PYPL as at Jun 25, 2020):
Thursday's trading range has been $4.55 (2.69%), that's slightly below the last trading month's daily average range of $4.89. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 173.48 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 172.77. The last time this happened on Monday, PYPL actually gained 1.49% on the following trading day.
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 close-by swing high at 175.40 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 284 times, PYPL closed higher 58.10% 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 63.73% with an average market move of 1.27%.