PayPal Is Ready to Make New Highs

Let's check out the charts again and formulate a trading strategy.

Jim Cramer told his Mad Money viewers Monday night that investors are rediscovering PayPal Holdings (PYPL) .

We covered PYPL on June 15, writing that, "In our February 5 review of PYPL we recommended raising stops to $224 so we are assuming that traders are still long. Add to longs on strength above $280. The $352 area is our first price target now."

Traders should have bought more PYPL last week at $280 or higher so let's check on the charts again.

In the updated daily bar chart of PYPL, below, we can see that the shares are ready to challenge the highs of February. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line.

The daily On-Balance-Volume (OBV) line has made new highs this month to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is bullish and rising.

 

In the weekly Japanese candlestick chart of PYPL, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line.

 

The weekly OBV line is pointed up and close to making a new high. The MACD oscillator just crossed to the upside for a fresh outright buy signal.

 

 

In this daily Point and Figure chart of PYPL, below, we can see that prices are in an uptrend and a price target of $351 is being projected now.

 

 

In this weekly Point and Figure chart of PYPL, below, we can see that the $416 area is being projected as a price target.

 

 

Bottom-line strategy: Continue to hold longs of PYPL. Raise stops to $269 now. Our price targets now are $351 and then $416.

(PYPL is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

Employees of TheStreet are prohibited from trading individual securities.