PYPL Testing Key Resistance! Trade Setups for TomorrowAnalysis:
PYPL has rallied sharply after bouncing from $81.84 support and is now testing critical resistance near $92. The price is approaching the upper boundary of its ascending channel, indicating potential exhaustion or further breakout momentum. The MACD is still positive but showing signs of waning momentum, while the Stochastic RSI is overbought, signaling caution for a pullback.
Volume has increased during the uptrend, but resistance at $92-$94, coupled with significant call wall activity, may cap near-term gains.
Key Levels to Watch:
* Resistance Levels:
* $92: Immediate resistance at the current price level.
* $94: Key resistance zone aligning with the second call wall and significant gamma exposure.
* $95: Extended upside target if bullish momentum persists.
* Support Levels:
* $90: Strong support aligned with positive GEX positioning.
* $88: Secondary support near the gamma wall.
* $86-$84: Critical downside support zone.
GEX Insights:
* Gamma Exposure (GEX):
* Positive GEX levels dominate near $92-$94, creating strong resistance.
* Negative GEX support is visible around $88-$86, providing stability against sharp declines.
* Options Activity:
* IVR: Moderate at 61.9, reflecting above-average implied volatility.
* Call/Put Ratio: Calls dominate at 44.4%, showing bullish sentiment but with resistance overhead.
Trade Scenarios:
Bullish Scenario:
* Entry: Break above $92 with strong volume.
* Target: $94 (first target), $95 (extended target).
* Stop-Loss: Below $90.
Bearish Scenario:
* Entry: Rejection near $92 with bearish price action.
* Target: $90 (first target), $88 (extended target).
* Stop-Loss: Above $93.
Directional Bias:
The bias leans cautiously bullish, but with resistance at $92-$94, a pullback or consolidation may occur before a sustained breakout. Traders should monitor volume and momentum for confirmation of the next move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
