Jim Cramer told Mad Money viewers Tuesday night that the pandemic has created a lot of so-called "new normals" in our economy, but once vaccines begin to usher in a bit of the "old normal," some stocks will begin to fizzle. Others will have staying power. PayPal Holdings ( PYPL) should have staying power as it has become the de facto payment platform of the online age.
We looked at PYPL a month ago on December 4 and wrote: "Hold existing longs in PYPL while new longs could buy at current levels. Risk to $201 and the $260 area is our new price target."
Prices have not yet reached $260 but did touch $244 recently. Let's check the charts again.
In this daily bar chart of PYPL, below, we can see some slowing of the advance but not worrisome sell signals. Prices are still in an uptrend above the rising 50-day moving average line.
The 200-day moving average line has a positive slope and the On-Balance-Volume (OBV) line shows a rise into December before some recent "leveling off".
The Moving Average Convergence Divergence (MACD) oscillator just crossed to the downside for a take profits sell signal or a sell in an uptrend.
In this weekly bar chart of PYPL, below, we see a positive message. Prices are in a longer-term uptrend above the rising 40-week moving average line.
The weekly OBV line has been strong since March and the MACD oscillator crossed to a new buy signal in early December.
In this daily Point and Figure chart of PYPL, below, we can see a potential upside price target in the $316 area.
Bottom line strategy: Existing longs should raise stop protection to $210. $260 and then the $300-$316 area are our price targets. A dip to $220 is a short-term buying opportunity.
