PayPal Holdings (PYPL), Shayne Heffernan recommended on July 17th, on Wednesday joined digital payments rival Square (SQ) in allowing customers to buy, sell and hold Bitcoins. PayPal stock climbed on the launch of its cryptocurrency service, moving into a buy zone, while Square stock fell.
San Jose, Calif.-based PayPal said customers will be able to use its online digital payment system to buy, sell and hold Bitcoin and other virtual coins. In addition, its customers will also be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021, the company said. PayPal has 346 million active accounts worldwide.
PayPal has dabbled in cryptocurrency. But in October 2019, PayPal withdrew from Facebook‘s (FB) Libra cryptocurrency project.
PayPal stock jumped 5.5% to close at 213.07 on the stock market today. Its stock has a cup-and-handle entry point of 209.12. With Wednesday’s gain, PayPal stock moved into a 5% buy zone. Bitcoin also surged, hitting highs not reached in more than a year.
PayPal Holdings, Inc. is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants.
The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant products, compose its Payments Platform.
It operates a two-sided global technology platform that links its customers, both merchants and consumers, around the globe to facilitate the processing of payment transactions, allowing it to connect merchants and consumers.
It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds.
It enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products.
It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 188.72.
The projected upper bound is: 227.25.
The projected lower bound is: 199.85.
The projected closing price is: 213.55.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.5346. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 64.94. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 33 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 161.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.
Rex Takasugi – TD Profile
PAYPAL HOLDI closed up 11.110 at 213.070. Volume was 120% above average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume 208.300 215.830 206.020 213.070 17,247,188
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 202.59 195.03 150.82 Volatility: 43 45 65 Volume: 8,598,148 7,924,552 8,759,225
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PAYPAL HOLDI gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
PAYPAL HOLDI is currently 41.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into PYPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on PYPL.O and have had this outlook for the last 13 periods.