NASDAQ:PYPL may be ready to breakout.

A possible breakout setup was detected on PAYPAL HOLDINGS INC (NASDAQ:PYPL) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:PYPL.

Insights from Technical Analysis

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall PYPL gets a technical rating of 10 out of 10. Both in the recent history as in the last year, PYPL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, PYPL did better than 91% of all other stocks. We also observe that the gains produced by PYPL over the past year are nicely spread over this period.
• PYPL is one of the better performing stocks in the Financial Services industry, it outperforms 86% of 101 stocks in the same industry.
• PYPL is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• 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.

Check the latest full technical report of PYPL for a complete technical analysis.

Why is NASDAQ:PYPL a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:PYPL this score is currently 9:

PYPL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 80.94. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 80.44, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for PYPL in the last couple of days, which is a good sign.

Trading setups like NASDAQ:PYPL

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.