Today we will take a look at Paypal; let's start with the main technical elements we can see:
First: The support and resistance levels. Currently, the price is against a major support zone working since the beginning of the year. From here, we have defined the next support level and the next resistance zone. Both will be working as primary targets, either for bullish or bearish resolutions.
Regarding the bullish view, we have two descending trendlines we should pay attention to. Based on previous behavior, we can expect corrections during the ascending movement. Either on the first one or the second one. The cleanest setup based on a technical perspective would be to wait for contact on the 2nd trendline and see a clear correction. IF that happens, then we can trade towards the Next resistance zone (previous ATH level)
Regarding the bearish view, we are NOT taking short setups on stocks. However, the scenario we think would be a clear confirmation of the bearish view would be:
-Bearish breakout of the support level
- Pullback on the broken support level
- A new local low after the pullback would be the confirmation of the bearish movement towards the next support zone (180.00)
Thanks for reading! Feel free to share your view and charts in the comment box.
First: The support and resistance levels. Currently, the price is against a major support zone working since the beginning of the year. From here, we have defined the next support level and the next resistance zone. Both will be working as primary targets, either for bullish or bearish resolutions.
Regarding the bullish view, we have two descending trendlines we should pay attention to. Based on previous behavior, we can expect corrections during the ascending movement. Either on the first one or the second one. The cleanest setup based on a technical perspective would be to wait for contact on the 2nd trendline and see a clear correction. IF that happens, then we can trade towards the Next resistance zone (previous ATH level)
Regarding the bearish view, we are NOT taking short setups on stocks. However, the scenario we think would be a clear confirmation of the bearish view would be:
-Bearish breakout of the support level
- Pullback on the broken support level
- A new local low after the pullback would be the confirmation of the bearish movement towards the next support zone (180.00)
Thanks for reading! Feel free to share your view and charts in the comment box.