Paypal has bounced folks, time to get on board!I've been watching Paypal's long slide downwards for what seems like forever. Well, I am calling a bottom, and I am doing it just prior to today's earnings announcement after close. Here is PYPL on the weekly bars, and here are the reasons for my stance:
1) Double top pattern established. From the height of this pattern we can make a reasonable estimate of the bottom by mirroring it downward from the base of the pattern.
2) Price bottomed right at the 66% (2/3) retracement of the prior large wave's height. Retracements generally fall between 33%-66%, so this reinforces the double top pattern completion stated above.
3) Weekly 200 SMA bounce. As you can see, it bounced neatly on the 200 SMA. This isn't the daily, it's the WEEKLY 200 SMA. This is a very long term line and means a great deal.
4) Weekly RSI is oversold. I listed this last, simply because it's been oversold for a long ass time now. Still, it's one more factor working to build the case for a long position.
The wild card here is earning's..... which come out in like 5 hours from how. This is why I wanted to get this out there. I think the earnings are going to be strong and it's set to jump.
If the entire market turns belly up, though, I will probably exit all long positions no matter how bullish their individual charts may be. It's just too hard to swim against the trend, which may very well be in the process of turning downward.