PYPL pushes through Tuesday's high
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PYPL finished Wednesday at 177.43 gaining $3.20 (1.84%), outperforming the Nasdaq 100 (1.21%). Today's close at 177.43 marks the highest recorded closing price ever. Trading up to $2.06 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 17th, PYPL gained 2.58% on the following trading day. Closing above Tuesday's high at 174.69, the market confirmed its breakout through the previous session high after trading up to $3.54 above it intraday.
Daily Candlestick Chart (PYPL as at Jul 01, 2020):
Wednesday's trading range has been $5.67 (3.25%), that's slightly above the last trading month's daily average range of $5.22. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PYPL.
Buyers managed to take out the key technical resistance level at 175.40 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for PayPal Holdings. Out of 223 times, PYPL closed higher 56.50% 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 62.78% with an average market move of 1.20%.