PYPL dominated by bears dragging the market lower throughout the day
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
PYPL finished Thursday at 177.21 edging lower $0.22 (-0.12%), underperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PYPL as at Jul 02, 2020):
Thursday's trading range has been $3.08 (1.71%), that's far below the last trading month's daily average range of $5.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PYPL.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Monday, PYPL actually gained 3.49% on the following trading day.
Prices are trading close to the key technical support level at 175.40 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PayPal Holdings. Out of 30 times, PYPL closed higher 70.00% 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 70.00% with an average market move of 2.75%.