PayPal Holdings Inc. (PYPL/NASD): general analysis
14 August 2018, 15:46
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 85.40 |
| Take Profit | 83.50, 82.00, 80.00 |
| Stop Loss | 87.50 |
| Key Levels | 80.00, 82.00, 85.50, 88.00, 92.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 88.10 |
| Take Profit | 91.00, 92.00 |
| Stop Loss | 86.00 |
| Key Levels | 80.00, 82.00, 85.50, 88.00, 92.00 |
Current trend
Since the beginning of August, PayPal shares have strengthened by 5.95% and are now trading at a 4.77% discount to the 52-week high. Earlier, on July 25, the company published Q2 financial report with results higher than market expectations. Revenue increased by 23% YoY to 8.36 billion US dollars, net profit increased by 28% YoY to 0.58 US dollars. In Q3, PayPal forecasts 12–13% YoY revenue growth to 3.62–3.67 billion US dollars and a decline in earnings per share to 0.31–0.34 US dollars.
During the last week, PayPal grew by 1.45% against the decrease in the S&P 500 index by 1.00%.
Support and resistance
At the moment, the company's shares are consolidating. The current technical picture indicates a possible correction after prolonged growth. The price is testing local support and resistance levels of 85.50 and 88.00. Indicators reflect the strength of buyers: the price was fixed above MA (50) and MA (200); MACD histogram is in the positive zone. However, it is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 88.00, 92.00.
Support levels: 85.50, 82.00, 80.00.
Trading tips
Short positions can be opened after the price is set below the level of 85.50. The closing of the profitable positions is possible at the levels of 83.50, 82.00 and 80.00. Stop loss is 87.50.
Long positions can be opened after the price is set above the level of 88.00 with the targets at 91.00–92.00. Stop loss is 86.00.
Implementation period: 3 days.
Since the beginning of August, PayPal shares have strengthened by 5.95% and are now trading at a 4.77% discount to the 52-week high. Earlier, on July 25, the company published Q2 financial report with results higher than market expectations. Revenue increased by 23% YoY to 8.36 billion US dollars, net profit increased by 28% YoY to 0.58 US dollars. In Q3, PayPal forecasts 12–13% YoY revenue growth to 3.62–3.67 billion US dollars and a decline in earnings per share to 0.31–0.34 US dollars.
During the last week, PayPal grew by 1.45% against the decrease in the S&P 500 index by 1.00%.
Support and resistance
At the moment, the company's shares are consolidating. The current technical picture indicates a possible correction after prolonged growth. The price is testing local support and resistance levels of 85.50 and 88.00. Indicators reflect the strength of buyers: the price was fixed above MA (50) and MA (200); MACD histogram is in the positive zone. However, it is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 88.00, 92.00.
Support levels: 85.50, 82.00, 80.00.
Trading tips
Short positions can be opened after the price is set below the level of 85.50. The closing of the profitable positions is possible at the levels of 83.50, 82.00 and 80.00. Stop loss is 87.50.
Long positions can be opened after the price is set above the level of 88.00 with the targets at 91.00–92.00. Stop loss is 86.00.
Implementation period: 3 days.
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