Technical Signals Point to a Possible Breakout for PAYPAL HOLDINGS INC.

Our stock screener has identified PAYPAL HOLDINGS INC (NASDAQ:PYPL) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:PYPL.

Insights from Technical Analysis

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall PYPL gets a technical rating of 8 out of 10. Although PYPL is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• PYPL is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so PYPL is lagging the market slightly.
• PYPL is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, PYPL did better than 70% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• PYPL is an average performer in the Financial Services industry, it outperforms 57% of 102 stocks in the same industry.

Our latest full technical report of PYPL contains the most current technical analsysis.

Why is NASDAQ:PYPL a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:PYPL currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, PYPL also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 72.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 68.89, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:PYPL

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.