PayPal has been a major beneficiary of coronavirus and the boom in e-commerce. It’s moved sideways since the end of July but now the chart may be attempting a breakout.
PYPL formed a bullish flag since the start of September, with the trendline running down through the early October levels. Yesterday it closed above that trendline.
Prices also consolidated at the 50-say simple moving average (SMA) and 21-day exponential moving average (EMA) for more than two weeks before getting decisively above both.
The weekly chart has some interesting patterns: A bullish inside candle the week ended September 25 followed by a rip higher. Then another bullish inside candle last week, which it’s now escaping.
PYPL’s last earnings report beat estimates. Its next report is scheduled for November 2. Now that the stock has moved above its falling trendline, it may have the potential for a meltup into the quarterly numbers.
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Good research, here it looks consolidating again but it will reach back in snap to 210. Targets are 215-225 before earning & after earning it can propel upto 250.