Toward the end of Tuesday night's Mad Money program, Jim Cramer discussed the Global Payments (GPN) -Total System Services (TSS) deal that could be a headache for PayPal Holdings Inc. (PYPL) and Square Inc. (SQ) .
However, the latter has a unique position with its large collection of small-and medium-sized businesses, while the former is a global payments' juggernaut.
Investors need to buy the pullbacks in PayPal, the undisputed leader with its collection of excellent assets, which include Braintree and Venmo, Cramer concluded.
Let's check out the charts of PYPL to round out the analysis.
In the daily bar chart, below, we can see that PYPL has held steady this month while so many stocks have stalled, weakened or slumped. PYPL is trading above the rising 50-day moving average line, which has not been tested since early February. The slower, 200-day moving average line has been bullish the past twelve months.
The daily On-Balance-Volume (OBV) line has been in an uptrend since October and confirms and supports the bullish case.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has rolled over the past six weeks, signaling a take profits sell.
In the weekly bar chart of PYPL, below, we can see an impressive rally the past three years, and, unlike many other charts I have examined in recent weeks, no top pattern or formation. The 40-week moving average line has a positive slope.
The weekly OBV line made a new high in April and May, but the weekly MACD oscillator has been narrowing toward a possible take profits sell signal in the weeks ahead.
In this point-and-figure chart of PYPL, below, we can see an upside price target of $123 being indicated.
Bottom-line strategy: I have been finding too many bearish charts lately, so reviewing PYPL has been refreshing. Prices are still in a strong uptrend, with the $120-$125 area the next price target. Raise stop protection to a close below $105.
