PYPL breaks below Friday's low
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PYPL ended Monday at 168.35 losing $2.52 (-1.47%) on low volume, notably underperforming the Nasdaq 100 (1.14%). Closing below Friday's low at 168.60, PayPal Holdings confirmed its breakout through the previous session low after trading up to $3.04 below it intraday.
Daily Candlestick Chart (PYPL as at Jun 29, 2020):
Monday's trading range has been $5.92 (3.45%), that's above the last trading month's daily average range of $4.98. 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.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 26th, PYPL lost -1.47% on the following trading day.
Prices are trading close to the key technical support level at 164.29 (S1).
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 173.71 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 164.29 where further sell stops could get activated.
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. While it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 179 times, PYPL closed higher 56.98% 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 72.07% with an average market move of 2.58%.