Today I am discussing Paypal Stock which has been drastically sold off around 40% from highs! I do think this is crazy, and oversold. BUT, I am going to analyze stocks appropriately and without any bias.
PYPL as shown on the Daily Chart has been breaking down through this Range it has been trading in of where I have a Rectangle shape Drawn.
PYPL just closed underneath that rectangle 2 days in a row, and even rejected off that bottom of the Rectangle on Friday. That shows Strong Resistance at that level.
PYPL also broke its Support from its previous breakdown @ the $179.20 area (White Line)
PYPL has 1 wick left from the candle on Jan. 10th and then of course further back supports.
But I think the range it is breaking out of now, is something to note down of not being a small break down. The reason I am saying this is because PYPL has now been in the sideways trading for around 2 and a half months. PYPL is now ready to make a bigger move, but here it seems that bigger move may be to the downside.
Here are EXTRA Reasons why PYPL is a good SHORT idea here.
TTM_SQUEEZE - Squeezing (red dots) indicating big movement of momentum coming. + Momentum Switching to Bearish.
Broke Down and even retested the Rectangle range.
Broke Previous Breakdown support.
GAP to fill at the GREEN Rectangle ($130s) area.
A lot of stocks like to always fill the gaps... and I know its a stretch to say hence it is a long time ago, but with bearish momentum this stock could easily fill that gap.
Some contradicting indicators to this SHORT idea
TTM_SQUEEZE (WEEKLY) - WEEKLY Still showing weakness, but appears to be wearing out, and fading to the bull-side.
WEEKLY moving average cloud.
Still some more key levels to be breaking
I hope you guys enjoyed this idea! Share it if you liked it!
If I do play this I will be looking in to Liquidated March & or April Puts near the $140 strike price.
PYPL as shown on the Daily Chart has been breaking down through this Range it has been trading in of where I have a Rectangle shape Drawn.
PYPL just closed underneath that rectangle 2 days in a row, and even rejected off that bottom of the Rectangle on Friday. That shows Strong Resistance at that level.
PYPL also broke its Support from its previous breakdown @ the $179.20 area (White Line)
PYPL has 1 wick left from the candle on Jan. 10th and then of course further back supports.
But I think the range it is breaking out of now, is something to note down of not being a small break down. The reason I am saying this is because PYPL has now been in the sideways trading for around 2 and a half months. PYPL is now ready to make a bigger move, but here it seems that bigger move may be to the downside.
Here are EXTRA Reasons why PYPL is a good SHORT idea here.
TTM_SQUEEZE - Squeezing (red dots) indicating big movement of momentum coming. + Momentum Switching to Bearish.
Broke Down and even retested the Rectangle range.
Broke Previous Breakdown support.
GAP to fill at the GREEN Rectangle ($130s) area.
A lot of stocks like to always fill the gaps... and I know its a stretch to say hence it is a long time ago, but with bearish momentum this stock could easily fill that gap.
Some contradicting indicators to this SHORT idea
TTM_SQUEEZE (WEEKLY) - WEEKLY Still showing weakness, but appears to be wearing out, and fading to the bull-side.
WEEKLY moving average cloud.
Still some more key levels to be breaking
I hope you guys enjoyed this idea! Share it if you liked it!
If I do play this I will be looking in to Liquidated March & or April Puts near the $140 strike price.
Comment:
Trimming today
Trade closed: target reached:
Out of Trade here on Gap Down.
March Puts up near 1500%
March Puts up near 1500%