PayPal - BUY STOP - 29th March 2022




PayPal - BUY STOP - 29th March 2022 (Pending)


Evening team,

 

For anyone who has been watching PayPals stock price over the past few weeks will know the price has been hammered down by roughly 70% from the 309 peak back in July 2021. The steep sell off alone should have you watching for a reversal opportunity due to the large over reaction in the market. From an Elliott wave perspective we are eyeing up a bullish counter trend that could last a number of months. As a whole, the financial markets are rebounding and running higher to the upside which should help lift all of the underlying assets that make up the indices.

PayPal Weekly Chart (log scale)

As you are most likely aware, there are waves on the larger degree and waves on a smaller degree. From the count above we can count a possible marjor market cycle top – a complete 5 wave bull market. The sell off has also setup a 5 wave decline into a possible wave A decline.

There has been a clear 5 wave decline into the 80 support zone which is also the support zone of the wave 4 back in April 2020. During a corrective pull back the wave 4 support zone is generally uses as a buying platform. The MACD is cross over to the upside indicating bears are running out of momentum.

PayPal 1 Hour Chart

Trade Setup: BUY STOP, entry price 119.22, stop loss 95.22 and take profit left open to run, initial target zone at the 194 resistance. 

This is a swing trade setup, and I am expecting it to run for a couple of weeks.

 

 

Trade Setup
BUY STOP

Entry
119.22

Take Profit
194

Stop Loss
95.22