PayPal Holdings Inc. shares (NASDAQ:PYPL) are currently engaged in a bearish movement, and buyers’ effort to push up the market has invariably been scuttled. The market was bullish from October 2020, until the middle of February 2021. After that, it began trending downwards, generating a short-term bearish signal.
4 EMAs are used for this analysis, and they are EMAs 10, 20, 50 and 200.
The color that stands for each EMA is shown at the left top part of the chart. The
EMAs 10, 20 and 50 are now sloping downwards and price is virtually below them.
Nonetheless, there wouldn’t be a long-term bearish bias until the EMA 200 is
breached to the downside.
When price goes further upwards from here, it would mean a rally in the context
of a downtrend (and that would be temporary).
The outlook on PYPL is bearish for this year, and the EMA 200 is expected
to be broken to the downside, resulting in a Death Cross. Our main target is
the support level at 200.00, which would also be breached to the downside.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Teach Yourself Technical Analysis: Teach yourself technical analysis
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