For his second "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Dan Schulman, president and CEO, and John Rainey, CFO, of PayPal (PYPL) , which just wrapped up their annual analyst day.
Schulman said the strength of PayPal lies in its brand and its advantage is data. The platform processes over 30,000 transactions a minute and that data has allowed them to build in 130 security and privacy checks.
Rainey said PayPal expects consumers to continue to gravitate toward digital wallets, even after the pandemic. Customers want to have easy access to their money no matter where they are and traditional banking is a thing of the past.
When asked about cryptocurrencies, Schulman explained that PayPal is taking a slow and responsible approach toward digital currencies.
We looked at the charts of PYPL earlier this month and wrote that "Continue to hold longs in PYPL. Raise your stop protection to $224. Price targets are now $300-$316 followed by perhaps $356 later in 2021." Let's check and see if anything has changed.
In the updated daily bar chart of PYPL, below, we can see that prices have "gone vertical" since the end of January. Thursday the shares reached a new all-time high and the round number of $300. PYPL closed well off the best levels of the day. Prices are still in a major uptrend above the rising 50-day and 200-day moving averages.
The daily On-Balance-Volume (OBV) line made a new high to tell us that buyers are more aggressive and to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator remains bullish.
In this hourly Japanese candlestick chart of PYPL, below, we can see a bearish evening pattern in the first three hours of trading Thursday. Weakness under $280 might precipitate a deeper pullback.
In the weekly Japanese candlestick chart of PYPL, below, we can see that prices have tripled from their base pattern in the $100 area. There is a large upper shadow on this week's pattern right at the big round number of $300.
The moving average line, OBV line and the MACD oscillator are still bullish.
In this daily Point and Figure chart of PYPL, below, we can see that prices have made a big rally but the potential price target of $356 is still intact.
Bottom-line strategy: We wrote "Raise your stop protection to $224. Price targets are now $300-$316 followed by perhaps $356 later in 2021." If you did not take some profits at $300 Thursday I would do some profit-taking Friday and raise stops to $271.
