PayPal Holdings, Inc. (PYPL) is an online payment processing company.
It’s really a great business model. You can use it to transfer money, pay for services and much more.
Like everything else related to ecommerce during the pandemic, this was one of the strongest plays during that time frame.
But since folks have returned to some form of in-person transactional business, the ecommerce industry and its services have fallen…
Back to Reality
Once upon a time, not that long ago, PYPL was trading over $300.
However, it has tumbled over 77% from its all-time high within the last 12 months or so.
The stock has now failed the support structure that has been constructed off of the initial existence of this stock…
I don’t really care where it goes as long as we can identify an opportunity to trade it.
And that’s exactly what we’ve done.
We found a weekly settlement that essentially confirms the opportunity for price action to sink lower.
Remember… There are no guarantees.
But if my confirmation technique and analysis hold true, there could be an 80%-92% chance that it does fall lower…
The Technical Picture
You see, two weeks ago, price offered the confirmation needed to take the short.
Last week, even though we experienced a “relief rally,” price failed to close above the structure which it had confirmed against.
This in itself is a good sign that this trade could very well work out in the long run.
So, I’ve charted the analysis below and zoomed in to the opportunity that I’m seeing for better clarity.
The weekly settlement below the black structure two weeks ago was the trigger.
The dotted line indicates the ideal stop loss placement, and the solid green line is my ideal target.
You can see that, even this past week, price action was halted at that black channel area.
So from here, it’s a wait-and-see game.
As long as we continue to settle below the black channel and the descending teal channel above is held, this trade could work out. I’ll do my best to keep you posted as this trade plays out…
Join Us for a Special Session
Before I go, I want to personally invite you to a special LIVE presentation with my colleague and expert stock trader Ross Givens.
Ross’s premium Alpha Stocks research service focuses on only the very best stock trading opportunities — both on the long side as stocks rise and on the short side when markets are crashing.
He recently recorded a 21.6% gain on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged…
As well as a gain of 21.3% in just 15 days in Permian Basin Royalty Trust (PBT) as that stock broke out of its range.
Rules to Live By
“The real heroes anyway aren’t the people doing things; the real heroes are the people NOTICING things, paying attention.” John Green
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.