PayPal..... The bulls are back!? Massive buy-signal!Hello Traders,
today, I`d like to show you, an opportunity to trade a stock just with the tools of classical chart analysis.
No Elliott waves, no Ichimokou, no nothing.
Who didn't know PayPal, the company which processes payments via the Internet; founded by Elon Musk, among others!?
The stock has fallen down to $92.25 within a „peak“, but closed above the important red trend-line!
This level, what the trend-line marks, was tested several times by market participants and was valid. Last week, the stock bounced again to these levels and reversed sharply this week. On a daily price chart, you will notice the fresh „buy-signal“, PayPal has set yesterday! Supported by a „bullish-engulfing, based on the weekly time-frame! Very strong!
www.tradingview.com
PayPal has moved above the latter high @ $113.54 and closed above this level with a massive bullish candle. That was the buy-signal! How did you know? Watch the candle and the volume that day!
Two things are short-term significant.
a. The stock needs to trade above the low @ $92.25, and
b. A „back-test of the „breakout-level“ should be expected in the coming days or week!
If so to come, and the re-test of these areas will be positive, the door is open to $122.21-124.31!
More bullish potential exist! But let's act „step by step“!
Have a great weekend…..
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
The editor is invested in this stock!
