PayPal stock has reversed back down after it failed to hit the 81.20 resistance level, achieved on July 31. The price rebounded on the five-month low of 74.40 but the technical indicators are signaling weak upside movement. The RSI indicator was moving upwards but it now appears to be turning slightly to the downside, while the MACD oscillator remains in the negative zone and is heading higher.
If price action jumps above 81.20 (immediate resistance), there is scope to test 84.14, which stands near the 20-day simple moving average (SMA). Clearing this key level would see additional gains towards the 87.74 barrier. This is considered to be a strong resistance area which has been rejected a few times in the past. Rising above it would see prices re-test the 93.68 peak.
An alternative scenario is a decline until the 74.40 support again, taken from the latest lows. If this level is breached, it would increase downside pressure and bring a reversal of the trend. From here, the stock would be on path towards 71.56 and then 70.10.
Overall, looking at the longer-term picture, PayPal retains the upside tendency as it creates a higher highs and higher lows.
PayPal stock has reversed back down after it failed to hit the 81.20 resistance level, achieved on July 31. The price rebounded on the five-month low of 74.40 but the technical indicators are signaling weak upside movement. The RSI indicator was moving upwards but it now appears to be turning slightly to the downside, while the MACD oscillator remains in the negative zone and is heading higher.
If price action jumps above 81.20 (immediate resistance), there is scope to test 84.14, which stands near the 20-day simple moving average (SMA). Clearing this key level would see additional gains towards the 87.74 barrier. This is considered to be a strong resistance area which has been rejected a few times in the past. Rising above it would see prices re-test the 93.68 peak.
An alternative scenario is a decline until the 74.40 support again, taken from the latest lows. If this level is breached, it would increase downside pressure and bring a reversal of the trend. From here, the stock would be on path towards 71.56 and then 70.10.
Overall, looking at the longer-term picture, PayPal retains the upside tendency as it creates a higher highs and higher lows.
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