PayPal has struggled in recent months despite the broader Nasdaq bouncing sharply. Is the payments stock poised for another leg to the downside?
The first pattern on today’s chart is the series of lower highs since August. Interestingly, the peak in early February was below the November high. The Nasdaq-100, on the other hand, made successively higher highs in February and April. That difference may reflect a lack of relative strength.
Second, PYPL has mostly remained below its 200-day simple moving average (SMA). That’s also a weaker showing than the broader index.
Third, notice how prices tried unsuccessfully to break an earlier weekly high of $77.11. That failed breakout may suggest sellers remain in control.
Next, PYPL has slipped back under its the 50-day SMA (which is also now falling).
Finally, our 2 MA Ratio custom script is in the lower study. The line dipped below zero today as the 8-day exponential moving average (EMA) crossed under the 21-day EMA. That could indicate a bearish turn in the short-term trend.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the series of lower highs since August. Interestingly, the peak in early February was below the November high. The Nasdaq-100, on the other hand, made successively higher highs in February and April. That difference may reflect a lack of relative strength.
Second, PYPL has mostly remained below its 200-day simple moving average (SMA). That’s also a weaker showing than the broader index.
Third, notice how prices tried unsuccessfully to break an earlier weekly high of $77.11. That failed breakout may suggest sellers remain in control.
Next, PYPL has slipped back under its the 50-day SMA (which is also now falling).
Finally, our 2 MA Ratio custom script is in the lower study. The line dipped below zero today as the 8-day exponential moving average (EMA) crossed under the 21-day EMA. That could indicate a bearish turn in the short-term trend.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
