Stock of the day: PayPal

In today’s technical analysis, let’s delve into PayPal, which is attempting to rebound from a significant sell-off but is facing some challenges. The major drop occurred in mid-June when the price broke below a wedge pattern, marked by black lines, and also fell through a key horizontal support at around $61, highlighted in yellow. This sell-off was exacerbated by a head and shoulders pattern, marked with orange rectangles, reinforcing the bearish signal.

As we moved into July, PayPal’s price has been gradually climbing, testing the previously broken yellow horizontal support, now acting as resistance. The current struggle is evident as the price battles this resistance level. Trading this setup involves watching for either a bounce off the yellow area, signaling a continuation of the downtrend and a sell signal, or a decisive break and close above this resistance, indicating a potential buy signal.

The current scenario suggests that unless PayPal can break and sustain above the $61 mark, the selling pressure remains dominant. Observing the price action in this critical zone will be key to determining the next move.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-paypal-3