PayPal Holdings, Inc. (NASDAQ:PYPL) $104 target price

PayPal Holdings, Inc. (NASDAQ:PYPL) $104 target price

PayPal Holdings, Inc. (NASDAQ:PYPL) $104 target price

Shares of PayPal Holdings Inc. PYPL, -3.50% are down 1.5% in premarket trading Monday after Guggenheim’s Jeff Cantwell downgraded the stock to sell from neutral, setting a $104 target price.

“We believe shares of PayPal will begin underperforming as investors increasingly contemplate 2020,” he wrote. “We see meaningful headwinds for the company – including the eBay EBAY, +0.82% separation, Brexit, and regulatory-related dynamics in Europe (PSD2/SCA) – that we expect will constrain growth in the company’s core (non-P2P) [total payment volume] and revenue, and will cause earnings growth to slow materially from current levels.”

Cantwell is lukewarm on the revenue potential for Venmo and expressed caution about key executive departures across the business. PayPal shares have gained 37% so far this year, as the S&P 500 SPX, -0.16% has risen 21%.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 116.66.

The projected lower bound is: 106.14.

The projected closing price is: 111.40.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.6287. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 36.18. 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 61 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 -228.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

PAYPAL HOLDI closed down -4.040 at 111.450. Volume was 129% above average (neutral) and Bollinger Bands were 10% wider than normal.

Open     High      Low     Close     Volume___
113.500 114.280 111.220 111.450 13,820,205
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 117.93 115.21 98.88
Volatility: 38 29 40
Volume: 7,888,783 5,851,256 7,736,378

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.

Summary

PAYPAL HOLDI gapped down today (bearish) 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 12.7% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of PYPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on PYPL.O and have had this outlook for the last 1 periods.

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