PYPL Momentum Stalls REVERSAL / SHORT idea

AwesomeAvani Updated   
BATS:PYPL   PayPal Holdings, Inc.
PYPL has had a great past two weeks putting in 7-9% gain. In the past week however, that

momentum has stalled. PYPL has printed a head and shoulders pattern. The predictive algo

of Lux algo suggests a reversal here. PYPL has been resisted on the higher price action

by the second upper anchored VWAP band. The H & S pattern neckline is about 63.

The predictive algorithm of LuxAlgo shows a forecast of downward price action as shown on

the black line to the right of the last candle.

I will close my long position here. Once price falls under 63, I will instead take a short

position targeting 61.35 and 59.35 being the area immediately above the mean VWAP

and first lower VWAP lines respectively. I will also look for the green RSI line to fall under

50 as an entry signal. In keeping with good risk management, the initial stop loss will be

63.15 with an adjustment of 0.12 for every 0.15 of price fall until the first target. I will take

off one third of the position and adjust the stop loss by a trialing ATR after that.

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