Stock to Watch: PayPal Holdings Inc. (PYPL/NASD)

Stock to Watch: PayPal Holdings Inc. (PYPL/NASD)

We are currently watching Paypal Holdings.  To get more stock market news, visit PayPal Holdings, Inc. works as an innovation stage and computerized installments organization that empowers advanced and portable installments for the benefit of customers and traders around the world. Its installment arrangements incorporate PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle items. The organization’s Payments Platform enables customers to send installments, pull back assets to their ledgers, and hold adjusts in their PayPal accounts in different monetary forms. It likewise offers extra benefits that empower traders to acknowledge installments online with credit or check cards. PayPal Holdings, Inc. was established in 1998 and is headquartered in San Jose, California.

Timeframe Intraday
Recommendation SELL STOP
Entry Point 106.00
Take Profit 103.00, 100.00, 98.00
Stop Loss 107.00, 109.00
Key Levels 99.00, 102.40, 106.00, 110.00, 114.00, 118.00
Alternative scenario
Recommendation BUY STOP
Entry Point 110.10
Take Profit 115.00, 118.00
Stop Loss 107.00
Key Levels 99.00, 102.40, 106.00, 110.00, 114.00, 118.00

Current trend

From a 4-month low on August 12, PayPal shares rose 6.9% within the correction. Earlier, for the first time in a long time, the forecast for revenue growth for 2019 has been decreased. About 20% of processed payments of the company fall on the international market, which the second half of the current year, will create problems for the issuer due to the trend of strengthening US dollars against another currencies.

Over the past week, PayPal shares rose 6.34%. Over the same period, the S&P 500 index grew by 2.96%.

Support and resistance

An ambiguous technical picture has developed in the company’s shares. The issuer is currently consolidating. The local support and resistance levels are 106.00 and 110.00, respectively. There is potential for further correction after a protracted rally. The indicators do not give accurate signals: MA (50) crossed MA (200); the MACD histogram is in the positive zone. It is better to open the positions from the key levels.

A comparative analysis of company multipliers and industry competitor companies indicates #PYPL overvaluation.

Resistance levels: 110.00, 114.00, 118.00.

Support levels: 106.00, 102.40, 99.00.

Trading tips

Short positions can be opened after the price consolidates below the level of 106.00. The closing of the profitable positions is possible at the levels of 103.00, 100.00 and 98.00. Stop loss will be located at 109.00.

Long positions can be opened after the price consolidates above the level of 110.00 with the targets at 115.00–118.00. Stop loss is 107.00.

Implementation period: 3 days.

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