PayPal Keeps Making Lower HighsPayPal has struggled in recent months despite the broader Nasdaq bouncing sharply. Is the payments stock poised for another leg to the downside?
The first pattern on today’s chart is the series of lower highs since August. Interestingly, the peak in early February was below the November high. The Nasdaq-100, on the other hand, made successively higher highs in February and April. That difference may reflect a lack of relative strength.
Second, PYPL has mostly remained below its 200-day simple moving average (SMA). That’s also a weaker showing than the broader index.
Third, notice how prices tried unsuccessfully to break an earlier weekly high of $77.11. That failed breakout may suggest sellers remain in control.
Next, PYPL has slipped back under its the 50-day SMA (which is also now falling).
Finally, our 2 MA Ratio custom script is in the lower study. The line dipped below zero today as the 8-day exponential moving average (EMA) crossed under the 21-day EMA. That could indicate a bearish turn in the short-term trend.
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