PayPal Holdings (NASDAQ:PYPL) – Does PayPal’s Stock Chart Show It’s in Trouble?

PayPal Holdings Inc. (NASDAQ: PYPL) Shares are trading higher on Thursday, as are those of several technology companies amid falling bond yields, which has pushed growth stock valuations higher.

PayPal was up 3.94% at $266.45 on Thursday when the market closed.

PayPal Daily Chart Analysis

  • The stock appears to have fallen from the bottom of what technical traders call an ascending triangle pattern.
  • The $310 price level has resisted in the past and may continue in the future. The higher low trendline was at a place where the stock has always been able to find support and needs to cross back above it or it could turn into resistance.
  • The stock is trading below the 50-day moving average (green) but above the 200-day moving average (blue), indicating that the stock is likely facing a period of consolidation.
  • The 50-day moving average could be a resistance zone going forward, while the 200-day moving average could be a support.
  • The Relative Strength Index (RSI) has climbed over the past two weeks and now sits at 49. This shows that the stock is seeing an increased number of buyers and the buying pressure is now almost equal to the selling pressure on the stock.

What’s next for PayPal?

Bullish traders are looking to see the stock pull back into the ascending triangle and be able to hold above the higher low trendline. This could allow the stock to resume the pattern in which it is trading. Bulls would then like to see the stock break above resistance and push higher.

Bearish traders are looking to see the stock hold the upper low trendline as resistance and begin to decline. If the stock could fall below the 200-day moving average, it could signal that the bears are really starting to take control of the stock.

Photo: Courtesy of PayPal

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Karen J. Nelson