PayPal Stock Is Gearing Up To See A Breakout In The Near Future

PayPal Holdings Inc. PYPL shares are moving Tuesday, a day after the stock popped amid speculation the company will update its app to allow stock trading for U.S. customers.

PayPal Daily Chart Analysis

What’s Next For PayPal?

PayPal is down 0.53% at $286.94 at the time of publication.

See Also: Is PayPal Getting Into The Stock Trading Game?

• The stock recently bounced off of support and is heading higher in what technical traders call an ascending triangle pattern.
• The stock trades below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of resistance, while the 200-day moving average may act as an area of resistance.
• The $310 price level has held as resistance multiple times in the past and may continue to act as resistance in the future. The higher low trendline is somewhere the stock has to hold as support and may also continue to in the future.
• The Relative Strength Index (RSI) has been moving up the past couple of weeks and now sits at 56. This shows the stock has seen an increase in buying pressure.

Bullish traders are looking to see the stock be able to stay above the higher low trendline until the price crosses above resistance. If the stock can break past resistance, then bulls would like to see a move higher and a period of consolidation following.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. Bears also want to see the stock cross below the 200-day moving average. If these things were to happen the stock may see a change in trend and sentiment.