• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

PayPal Stock Is Giving Confidence to Buyers

Our latest analysis and strategy for shares of the online payments company.
By BRUCE KAMICH
Nov 13, 2019 | 09:08 AM EST
Stocks quotes in this article: PYPL, FB

For his "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer checked back in with John Rainey, CFO of PayPal Holdings Inc. (PYPL) , the online payments company with shares up 22% for the year.

Rainey started off by saluting our country's veterans. He said PayPal has an employee resource group called Serve, which has dedicated the entire month of November to the 181 veterans they've hired since 2017 and their families.

Rainey continued by saying that PayPal is all about making the movement of money easier, safer and more secure. The company does this through its partnership with Facebook (FB) as well as with its own services like Venmo, which adds a social component to money that the millennials love.

Rainey was also bullish on China, where his company was the first American financial institution to be granted a license to operate inside of China.

Let's check out the charts and indicators this morning along with the story.

In the daily bar chart of PYPL, below, we can see that prices made a small double bottom back in November/December before the rally to the July high. Prices corrected lower into October before a rebound and retest. PYPL is now poised to test the declining 50-day moving average line as well as the cresting 200-day line.

PYPL corrected about $25 from its highs but the daily On-Balance-Volume (OBV) line did not weaken much from August. It looks like the longer-term investors in PYPL stayed with those positions.

The Moving Average Convergence Divergence (MACD) oscillator gave cover shorts buy signals in August and October and is now trying to cross the zero line for an outright go long signal.

In the weekly bar chart of PYPL, below, we can see that prices tripled over the past three years. The price weakness in the past three months or so looks like any of the other corrections in the past three years. Prices are currently below the rising 40-week moving average line.

The weekly OBV line has shown weakness the past four months but it could be stabilizing now. The MACD oscillator on this longer time frame is narrowing toward a covert shorts buy signal.

In this Point and Figure chart of PYPL, below, we can see an upside price objective of $132 being indicated.

Bottom-line strategy: Nearby support around $100 could be tested further but traders could probe the long side of PYPL on available weakness risking below $95. The $130 area is our first price target.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | E-Commerce | Mad Money | Executive Interview

More from Stocks

Bearish Bets: 2 Stocks You Should Consider Shorting This Week

Bob Lang
Dec 15, 2019 12:00 PM EST

These well-known names are showing both technical and quantitative deterioration.

Get a 6% Yield for This Best In Class MLP

Bob Ciura
Dec 14, 2019 1:00 PM EST

Hey income investors, this MLP has increased its distribution for 61 consecutive quarters.

To Be a Great Trader, Plan on Losing Money

James "Rev Shark" DePorre
Dec 14, 2019 10:00 AM EST

Losses are simply a function of the trading process and are not an indication of failure.

A Quiet Conclusion to a Dramatic and Contentious Issue

James "Rev Shark" DePorre
Dec 13, 2019 4:24 PM EST

This market has such a positive brew that has to make you at least a little apprehensive.

Put These 2 Stocks on Your Radar for the Week Ahead

Timothy Collins
Dec 13, 2019 1:00 PM EST

While both have 'Technologies' in their name, they don't share the same space.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:10 AM EST BOB LANG

    Banking a Big Winner in SRPT, Rolling Up

    Nov. 20 here on the CC, I mentioned buying some Ma...
  • 10:36 AM EST GARY BERMAN

    Fibocall: How High Can Crude Go?

    On crude: I am looking for higher, but please b...
  • 08:20 AM EST BOB LANG

    Webinar Time - Talkin' Calendars, Butterflys

    join me later today after the market close as we t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login