Falling wedge on the weekly
Market:
The overall market has been riding high, but we are approaching overbought territory, raising concerns about a correction.
Specifics on PYPL:
On the weekly chart, a big falling wedge pattern has formed, typically a bullish signal. However, PYPL's struggle to break out on January 22 and the fundamental challenges, including decreasing margins add layers of complexity.
Perspective:
I am bullish in the mid and long term, I would be careful. The falling wedge pattern suggests a potential bullish reversal, but risks associated with market correction and internal challenges pose threats.
Target Price:
I see two potential scenarios:
1. In the event of a market correction, PYPL might experience a dip near its 52-week low at $50.23. However, after that, I expect a quick rebound, with a bullish breakout - target at $66.96 (P Pivot) and a further price target of $83.51 (R1 Pivot) post-breakout.
2. There is no market correction and PYPL manages to break out (I personally find this scenario less likely), reaching the P Pivot, but with less momentum.
Support Level:
The support level is at $50.23, (52-week low).
Technicals: ✅
Fundamentals: ✅
The overall market has been riding high, but we are approaching overbought territory, raising concerns about a correction.
Specifics on PYPL:
On the weekly chart, a big falling wedge pattern has formed, typically a bullish signal. However, PYPL's struggle to break out on January 22 and the fundamental challenges, including decreasing margins add layers of complexity.
Perspective:
I am bullish in the mid and long term, I would be careful. The falling wedge pattern suggests a potential bullish reversal, but risks associated with market correction and internal challenges pose threats.
Target Price:
I see two potential scenarios:
1. In the event of a market correction, PYPL might experience a dip near its 52-week low at $50.23. However, after that, I expect a quick rebound, with a bullish breakout - target at $66.96 (P Pivot) and a further price target of $83.51 (R1 Pivot) post-breakout.
2. There is no market correction and PYPL manages to break out (I personally find this scenario less likely), reaching the P Pivot, but with less momentum.
Support Level:
The support level is at $50.23, (52-week low).
Technicals: ✅
Fundamentals: ✅
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.