PYPL bullish Signal: Dragonfly Doji + CCI Divergence
PYPL is currently on a downtrend, but there are multiple signs that the current trend might reverse.
Price is falling while the Commodity Channel Index is rising - this is a very obvious divergence ... and an indication of a potential trend reversal.
Taking a closer look at CCI and Price, we also see hidden divergence a couple of days ago (lower lows vs higher lows).
During the latest divergence, we spot an interesting candle chart pattern: a Doji. Dojis are usually indicating indecision - in this case the long-legged Doji almost looks like a Dragonfly Doji.
In combination with a divergence, this can be seen as a rejection of lower prices and as a bullish signal.
The current monthly Pivot has not yet been touched, so the price might rise to this Pivot point at 245.97 .
Interestingly, a few days ago, on October 12th, we had an almost identical setup: (minor) downtrend, bullish divergence, Doji, untouched pivot. The candle following the Doji was still red but the price went up to the monthly pivot.
Price is falling while the Commodity Channel Index is rising - this is a very obvious divergence ... and an indication of a potential trend reversal.
Taking a closer look at CCI and Price, we also see hidden divergence a couple of days ago (lower lows vs higher lows).
During the latest divergence, we spot an interesting candle chart pattern: a Doji. Dojis are usually indicating indecision - in this case the long-legged Doji almost looks like a Dragonfly Doji.
In combination with a divergence, this can be seen as a rejection of lower prices and as a bullish signal.
The current monthly Pivot has not yet been touched, so the price might rise to this Pivot point at 245.97 .
Interestingly, a few days ago, on October 12th, we had an almost identical setup: (minor) downtrend, bullish divergence, Doji, untouched pivot. The candle following the Doji was still red but the price went up to the monthly pivot.
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