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PayPal Finds Support at Old Resistance

Long
NASDAQ:PYPL   PayPal Holdings, Inc
Online payments giant PayPal gapped higher on a strong earnings report in late October. It had plenty of downward momentum at the time, and some resistance points around $108 prevented much follow-through. PYPL also slammed into its 200-day simple moving average ( SMA ) and a declining 50-day SMA .

But that was then, and this is now. Has the stock paid its dues as MACD ramps higher? A bullish note from Wedbush drove the shares above their channel on Monday, and they've consolidated there since. Now it looks like the old $108 resistance level is turning into support.

This gives traders a potentially key price area for risk management. As long as it holds, buyers may trickle in and look to ride PYPL back toward the old peaks above $120.

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