Stock of the day: PayPal

Today’s focus is on PayPal, which is currently testing a key horizontal support level at $77.2. This red line has played a significant role in the stock’s price action, serving as a major resistance in 2023 and later becoming a respected support in 2024. Last week, this level successfully held back the downswing, but this week, the price is showing signs of breaking below it.

So far, the weekly candle is trading below the support, which indicates potential weakness. However, the final confirmation of a long-term sell signal would come if the weekly candle closes below $77.2. A weekly close below this level would suggest that the support has failed, potentially leading to further downside momentum.

On the other hand, if buyers step in and the price bounces off this level, forming a hammer candle or another reversal pattern, it could signal a buying opportunity. Such a move would indicate that this support remains valid and that demand is strong enough to hold prices above it.

For now, sentiment appears negative, but the weekly close will be crucial in determining PayPal’s next major move. Traders should monitor this level closely to see whether the stock confirms a breakdown or stages a rebound.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-paypal-6