PayPal Holdings, Inc. (PYPL) was reviewed back in the middle of March where I wrote that "Bottom line: I think about risk all the time and I think if you are long PYPL and you are a short-term trader I would book some profits and raise your sell stops to $76. If you are a longer-term 'investor' I would risk to $71."
Looking back over the price action since March 13th , I can see that prices have weakened and booking some profits was a good idea. Recently prices fell below $71 and tested the rising 200-day moving average line so I will assume that traders and investor are flat. Let's check the latest charts and indicators to see if it is attractive to take a new long position.
In this daily bar chart of Action Alerts PLUS holding PYPL, below, we can see that price are below the declining 50-day moving average line and just above the rising 200-day line.
The daily On-Balance-Volume (OBV) line made a high back in late January when prices made their high. The OBV line has trended sideways the past three months but has not actually turned down. I'll grade the OBV line neutral for now pending a turn higher or lower from here.
The Moving Average Convergence Divergence (MACD) oscillator is narrowing now towards a possible cover shorts buy signal.
In this weekly bar chart of PYPL, below, we can see that prices are testing the rising 40-week moving average line. The weekly OBV line shows twin peaks in November/January and weakness through April. The weekly MACD oscillator has been working its way down towards the zero line after a bearish crossover in late January.
In this Point and Figure chart of PYPL, below, we can see a number of rally failures and a downside price target of $65.00.
Bottom line: With PYPL testing the rising 200-day moving average line last week, a push up soon to attempt to make new highs is in order. Sideways or lower prices for PYPL in the next few weeks are likely to break the 200-day line and could set the stage for weakness to $65.