PayPal's Stock Battles Resistance: What's Next?

Paypal Holdings, Inc. PYPL is almost back within arm’s reach of its Feb. 16 all-time high of $309.14.

Paypal’s stock has undergone a lengthy period of consolidation since making its new all-time high, in part due to some uncertainty across the major indexes in May. In its consolidation, the stock set up a bullish triangle pattern and broke up from it on May 26. The stock hugged the top sloping line of the triangle for four trading days, but eventually made its way north and through an upper resistance level.

The PayPal Chart: Payal was able to close Monday over a second resistance level at the $274 level, but on Tuesday rejected the level and closed back below it. The $274 area has acted as a major resistance zone in the past and PayPal was unable to bust through it on several attempts made from April 13-29.

Although PayPal is, once again, struggling at this resistance zone Monday and Tuesday’s candlesticks both have lower wicks indicating that when the price has dipped to the $270 level bulls are coming in and purchasing the stock.

PayPal is trading above both the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day EMA, all of which are bullish indicators. PayPal is also trading about 16% above the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

See Also: Two Former PayPal Execs Launch Crypto Payments Platform To Fight SWIFT Banking System

Bulls want larger bullish volume to come in bust PayPal through the upper resistance level so that it can become support. If PayPal can regain $274 as support, it doesn’t have any heavy resistance left above but may struggle a little bit at the $286 level.

Bears want PayPal’s stock to continue to reject its upper resistance and for bearish volume to push the stock back down to the $259 mark. If PayPal were to lose that level as support, it could fall toward $243 before finding another support level.

PYPL Price Action: Shares of PayPal were trading around $273.65 at publication time.