Stock of the day: PayPal

In today’s Stock of the Day, let’s delve into PayPal, focusing on the weekly chart. The technical picture is far from encouraging, as the price has formed a classic Evening Star candlestick pattern, marked by a sequence of three candles: a bullish candle, followed by a gap-up indecision candle, and finally a bearish candle with lower highs and lower lows. This bearish reversal pattern, highlighted with a yellow rectangle, indicates growing selling pressure.

However, there is an intriguing twist. At the end of the week, indices experienced a bullish reversal, offering a glimmer of hope for PayPal. This reversal is evident in the weekly chart, where the lower wick of the last candle demonstrates buying interest around a critical confluence of supports: a red horizontal support and a black uptrend line.

As long as the price holds above these two key supports, the bearish sentiment remains on hold, and a sell signal is not yet confirmed. However, if the price closes a day below these supports, it would confirm a strong sell signal, with a significant downside likely to follow.

Key Points to Watch:

• The red horizontal support and black uptrend line are pivotal levels.
• A daily close below these supports will invalidate any bullish hopes and trigger a sell signal.
• For now, the situation hinges on whether buyers can maintain control above these critical levels.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-paypal-4