PayPal is a global online payment system that enables users to send and receive money digitally. Founded in 1998, it quickly became a preferred method for eBay transactions. Today, it’s widely used for online shopping, bill payments, and remittances, offering security and convenience to millions worldwide. For its fiscal second quarter ended June 30, PayPal reported earnings before certain costs of $1.16 per share, up 24% from 93 cents per share in the same quarter of last year. Revenue rose 7% to $7.3 billion, though analysts had expected adjusted earnings of $1.15 on revenue of $7.27 billion. Does this mean that stocks have a fair chance to rebound?
PYPL.US 1W Chart Analysis, September 6, 2023
Is PayPal bottoming?
The situation on the PayPal chart is similar to that described earlier by the German company HelloFresh. The price peaked in 2021. With the start of the restrictive policy of central banks, it fell by about 80%. The price has been hitting a low for about a year, but there are clear signs of a weakening of the downward trend.
These are primarily bullish divergences. The first – the longer one lasted from February 2022 to May 2023. While the price has reached successive lows, the RSI showed higher minimums (green, diagonal lines). The second divergence (marked in light blue) indicates a double bottom formation between May and September 2023, which was not confirmed on the RSI oscillator.
Will PayPal leave the manipulation zone?
Moreover, this formation occurs in the so-called manipulation zone, a phenomenon that sometimes appears in financial markets. Market manipulation intentionally distorts price action to deceive market participants through illegal or unethical means for selfish interest.
This could be to inflate or deflate the price falsely. Market manipulation aims to capitalize on favorable artificial market movements for personal gain and is marked in a purple box just under the Fibo retracements.
After HelloFresh left the manipulation zone, its price first broke EMA50, and at the time of publishing the article, it was heading to EMA100. It is also possible to achieve Fibo 0.236. In the case of such a scenario on PayPal, this means an upside potential of 17.5% (EMA50), 51.5% (EMA100), and 86% (Fibo 0.236), respectively.
As always, in the case of long-term analysis, the closing of the weekly candle will be crucial. It may also be helpful to look for golden crosses on smaller timeframes on EMAs and MACD to confirm the trend reversal.
Remember that PayPal USD is now available on the SimpleFX Platform as a payment method!
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