PAYPAL - Long Term Accumulation WindowPaypal - NASDAQ:PYPL
Below I cover the Chart and some interesting fundamental news on what Paypal is upto.....
CHART
Everyone should have expected significant resistance at the $74.66 price level due to a confluence of the following at that level;
1. 200 Day SMA
2. Point of Control (POC)
3. Falling Wedge Diagonal overhead resistance
(SEE CHART FOR OUTLINE)
Further downside in the short term would not surprise me, however the long term positive divergence presents a long term opportunity.
How am I playing this?
I have a long term small position that is 15% in the negative at present, its thee one negative position I hold. Similar to NIO (which was at a small loss for weeks on end, I continued to average in on a positive divergence), I will average now to PYPL with a 2nd purchase and if we drop down to the RSI resistance line I will average in again with a 3rd purchase.
Ideally traders, would want a break out above the point of confluence on the chart and to find support above or on $74.66. I would not be day or week trading from current levels. I intend to hold for months, potentially years, similar to my NIO play.
If we lost the bottom of the falling wedge I would cut my losses at this point.
This is a High Risk / High Reward trade. The NIO trade has rendered me a significant 50% unrealized profit over the past few weeks. It could take months for me to see a similar return here on Paypal, and I'm ok with that. Timeframe expectation is long term.
What's PayPal Upto?
Interestingly Paypal announced a major deal with KKR in June 2023 whereby KKR agreed to purchase up to €40 billion of eligible current and future PayPal Pay Later loans that originated in Europe.
PayPal has become an industry leader with its PayPal Pay Later products, issuing more than 200 million loans to over 30 million customers in eight markets around the world since 2020.
PayPal expects to allocate approximately $1 billion to incremental share repurchases this year and updated the outlook from approximately $4 billion to approximately $5 billion in total share repurchases in 2023.
Paypals close association with KKR is notable. KKR - Kohlberg Kravis Roberts & Co. are an major American global investment company who have secured the two largest company buy outs in history RJR Nabisco & TXU. Paypal have huge ambitions and the buck to back them from the KKR.
The deal and association with KKR is yet another reason to keep a long term headset on for this trade/investment.
PUKA
