Potential signal:
- I am a buyer of a small position above $71, with a stop loss at the $68.85 level.
- I would be aiming for a move to the $74.15 area.
The market for PayPal initially gapped a bit lower in the opening few minutes of trading, but we've seen the market turnaround and at least mitigate some of the losses. There was a headline coming out of Germany that several German banks had blocked PayPal due to the security concerns that they had.
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So, with that, I think you have a situation where traders have to be very cautious, but it's also worth noting that this is a market that seems to have a bit of a floor at the $67 level. With that being the case, I think you have to pay attention to the 50-day EMA above, which is at the $70.82 level. And I think if we were to break above there, then that probably has PayPal looking to fill the gap from the drop that we had a couple of weeks ago.
In that environment, that could open up a move to the $78 level. Conversely, if we were to break down below the $67 level, then it opens up the floodgates and you could go looking at the $60 handle.
Quiet Time of Year in General
The volume is okay, but this time of year overall is generally somewhat quiet due to the fact that most of the larger traders around are looking at this uh from the beach. They're not actually trading. So, I think until vacation season is over in another week or two, we probably have a little bit of middling here. That headline did throw a monkey wrench into the situation, but there is an argument to be made that perhaps this market is ready to try to turn things around. For what it is worth, we are near the 50 % Fibonacci retracement level that we keep bouncing from. So that might be worth paying attention to as well. But at this juncture, I think you have to assume it's more or less buy on the dip, but more of a grind to the upside.
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