PayPal Holdings Inc (NASDAQ:PYPL) shares are moving higher Tuesday after the company announced plans to establish a bank, which could enhance its ability to provide business lending solutions.
- PayPal Holdings stock is gaining positive traction. What’s pushing PYPL stock higher?
What To Know: PayPal announced it submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC), with the goal of establishing PayPal Bank.
PayPal Bank intends to offer interest-bearing savings accounts and small business loans, while also pursuing direct membership with U.S. card networks to enhance its processing and settlement functions.
This news is contributing to the stock’s positive movement, even as broader market indices are mostly in the red, suggesting the move is being cheered by investors amid a generally weak trading environment.
PayPal stock is currently trading 0.3% above its 20-day simple moving average (SMA) but remains significantly below its longer-term averages. This positioning indicates a bearish trend overall, as the stock struggles to regain momentum against key moving averages.
MACD is above its signal line, indicating bullish momentum, which could suggest a potential for upward price movement in the near term. However, traders should remain cautious, as the overall trend remains weak.
Key support is at $58.00, while resistance is at $64.00. If the stock tests the support level, a break below could signal further declines, while a move above resistance might indicate a trend reversal and a potential recovery.
Over the past 12 months, PayPal has seen a significant decline of 33.47%, reflecting broader challenges in the fintech sector and company-specific hurdles. This long-term performance underscores the importance of monitoring both technical indicators and market sentiment moving forward.
Currently, the stock is trading closer to its 52-week low of $55.85 than its 52-week high of $93.25. This positioning suggests that the stock has considerable room for recovery, but traders should watch for confirmation of strength given the longer-term weakness.
PYPL Price Action: PayPal shares were up 1.81% at $61.84 at publication time on Monday, according to Benzinga Pro data.
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Image: courtesy of PayPal.
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