PYPL runs into sellers around 173.71 for the third day in a row
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
PYPL ended the week 3.96% higher at 170.87 after losing $1.63 (-0.94%) today on low volume, but still significantly outperforming the Nasdaq 100 (-2.5%). 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 26, 2020):
Friday's trading range has been $5.11 (2.94%), that's slightly above the last trading month's daily average range of $4.83. 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 lower than usual for PYPL.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on June 19th, PYPL actually gained 3.59% on the following trading day.
The stock ran into sellers again today around 173.71 for the third trading day in a row after having found sellers at 172.78 in the prior session and at 173.48 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 175.40 where further buy stops might get activated.
Among the five 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 60 times, PYPL closed higher 63.33% 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 66.67% with an average market move of 1.18%.