PayPal stock: buy or sell
Aug 1st, 2021
PayPal stock brief
- After making new all-time highs last Monday, PayPal closed on Friday at $275.53 sinking a -2.70%
- The price is currently below the lower Bollinger band, which is usually an indicator of a short-term rebound that you should not try to trade
- Last Wednesday, PayPal released its Q2 earnings report
- Price is drawing a scaled uptrend since last March with higher tops and higher bottoms. This rally marked a 23.51% gain
- PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide.
Should I buy PayPal stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PYPL stock a buy?
In the current situation of PayPal there is not any eligible buy setup. This doesn't mean $PYPL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell PayPal stock?
When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your profits. Just as when we have to buy shares, choosing when is the best time to sell is not a haphazard decision, and we must follow our own trading strategy. We like very simple setups to guide us on when is the best time to sell our shares. Be aware that these setups should not be used for shorting PayPal stock
A golden rule is that you should never keep an investment that produces greater losses than those expected upon purchase. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell PayPal stock?
In the current situation of PayPal there is not any eligible sell setup, so PayPal stock holders with operations in profit can keep their positions
Price lost SMA50 level
PayPal stock gained a 11.31% in a month during the time it was above the 50-d SMA. On Friday, price dropped below the 50-d moving average indicating that the previous uptrend might have come to an end. For medium-term investors who benefited from the stock during the time the price was above the average, this flag should be a heads up and a trigger to sell the shares and take their returns
In the last 30 days we couldn't find any rating for PayPal
PayPal stock analysis
Since last March, PayPal has been drawing an uptrend that so far marked an amazing 23.51%. The price action shows higher highs and higher troughs, and along the way gave some buying opportunities for those who wanted to enter. Latest low was last May, when price bounced at $233.61. Now, the price swings in a consolidation between its last top ($310.16) and its last bottom ($233.61)
$PYPL at All-time Highs
PayPal did it again, and reached new all-time highs (ATH) last Monday at $310.16
Supports and resistances
The current resistances are:
The current supports are:
When the price moves out of the band (above the upper line or below the lower line) it indicates that the price action is having a very strong trend and therefore can correct the trend to the average. In this case, the price is below the upper band, and that should mean a near-term bounce off (at least) until it is back above the band
Relative strength index
The RSI dropped below the overbought level of 70 last Monday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Friday was 35.24. Since that level was lost, PayPal price collapsed a 10.70%
PayPal stock price history
PayPal started trading on Jul 6th, 2015 priced at $38.00 per share1. Since then, PYPL stock surged by 625.08%, with an average of 104.18% per year. If you had invested $1,000USD in PayPal stock at that time, it would worth $7,250.79 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for PayPal stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions release their price predictions based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial data by the company, and many times. If you are a small trader you shouldn't buy or sell based on these projections.
We don't have any target price posted in the last month for PayPal.
Earnings and financials
Last Wednesday, PayPal ($PYPL) hosted the quarterly shareholders event and presented the report. PayPal presented earnings of $1.15 per share compared to analysts estimate that was $1.13.This compares to Earnings of $1.07 per share same quarter last year, so reported EPS is an increase of 7.48%. Looking at revenues, figures exploded a 30.64% compared to $46.2B year over year.
PayPal ($PYPL) is hosting the Q3 earnings call next November.
Disclaimer:The opinions contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the individual circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for informational purposes only
|Friday, July 30th, 2021|
|Day range||$274.21 - $280.5|
|Average true range||$8.79|
|50d mov avg||$282.14|
|100d mov avg||$267.57|
|200d mov avg||$248.71|
|Earnings date||November 1st, 2021|