Hello Traders, today, I`d like to show you, an opportunity to trade a stock just with the tools of classical chart analysis. No Elliott waves, no Ichimokou, no nothing. Who didn't know PayPal, the company which processes payments via the Internet; founded by Elon Musk, among others!? The stock has fallen down to $92.25 within a „peak“, but closed above the important red trend-line! This level, what the trend-line marks, was tested several times by market participants and was valid. Last week, the stock bounced again to these levels and reversed sharply this week. On a daily price chart, you will notice the fresh „buy-signal“, PayPal has set yesterday! Supported by a „bullish-engulfing, based on the weekly time-frame! Very strong! tradingview.com/chart/dSbG6Npx/ PayPal has moved above the latter high @ $113.54 and closed above this level with a massive bullish candle. That was the buy-signal! How did you know? Watch the candle and the volume that day! Two things are short-term significant. a. The stock needs to trade above the low @ $92.25, and b. A „back-test of the „breakout-level“ should be expected in the coming days or week! If so to come, and the re-test of these areas will be positive, the door is open to $122.21-124.31! More bullish potential exist! But let's act „step by step“! Have a great weekend….. Ruebennase
Feel free to ask or comment! Trading this analysis is at your own risk! The editor is invested in this stock!