PYPL closes within previous day's range after lackluster session
PayPal Holdings Inc. (PYPL) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
PYPL finished Tuesday at 177.28 edging higher $1.10 (0.62%) on low volume, significantly outperforming the Nasdaq 100 (-0.75%). Trading $2.26 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PYPL as at Jul 07, 2020):
Tuesday's trading range has been $3.64 (2.05%), that's below the last trading month's daily average range of $5.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PYPL.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 24th, PYPL actually gained 2.68% 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.
Buying might speed up should prices move above the close-by swing high at 181.24 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 174.46 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for PayPal Holdings. Out of 310 times, PYPL closed higher 56.13% 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 63.23% with an average market move of 1.62%.