Paypal Stock Continues To Dip Lower: What's Next?

Paypal Holdings Inc. PYPL shares are trading lower Thursday following a Wednesday Bloomberg report suggesting the company is exploring the purchase of Pinterest. The stock was trending on social media sites throughout the day Thursday.

Paypal was down 5.21% at $244.89 Thursday afternoon. 

Paypal Daily Chart Analysis

• The stock has fallen out of the bottom of what technical traders call an ascending triangle pattern.
• The $310 price level has held as resistance in the past and may continue to in the future. The higher low trendline has been an area that has always held as support, but as it fell below the trendline, it may now hold as resistance.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing a period of bearish sentiment.
• Each of these moving averages may hold as a place of resistance in the future.
• The Relative Strength Index (RSI) has been falling the last few days and now sits at 34. This nears the oversold area, where the stock will see much more selling pressure than buying pressure.

See Also: Why Paypal Stock Is Trading Lower Again Today

What’s Next For Paypal?

Bullish traders are looking to see the stock bounce and cross back above the higher low trendline. Bulls are then looking to see the stock go on to break above the $310 level for a possible breakout and strong bullish move.

Bearish traders are looking to see the stock hold the higher low trendline as resistance and begin to fall lower. Bears would like to see the stock continue to hold below the moving averages for sentiment to stay bearish.