PayPal (PYPL) is not scheduled to report earnings until after the close of trading on May 8, but we could soon see price surprises on the upside. Let's review the condition of the charts and indicators.
In this daily bar chart of PYPL, below, I can see a sideways trend the past 12 months. Prices have found buying interest (support) around the $70 area. Prices have stayed below the 200-day moving average line but have crisscrossed the 50-day line. The On-Balance-Volume (OBV) line made a low in late December and shows some subsequent improvement. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line.
In this weekly Japanese candlestick chart of PYPL, below, I can see that prices are moving sideways below the 40-week moving average line. The most recent candle shows a lower shadow telling me that traders are rejecting the lows. The OBV line has been holding the low made in December. The MACD oscillator has been improving for many months but still stands slightly below the zero line.
In this daily Point and Figure chart of PYPL, below, I can see a downside price target in the $65 area. A trade at $77.49 should improve the picture and could precipitate further gains.
In this weekly Point and Figure chart of PYPL, below, I see a possible downside price target in the $58 area.
Bottom line strategy: Shares of PYPL have struggled to restart their advance, but things are looking more positive. Aggressive traders could go long PYPL on strength above $78.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.