Sell signal under management · week 6
PayPal sheds 4.1% as money flow slips below zero for the first time in 11 weeks
Our view last week
A week ago sellers held 93% of volume; this week the picture flipped: PayPal stock climbed 5% with 86% of trading on the buy side and a bullish engulfing on the daily chart. The bounce stalled below the 7-day high, in the 55.5 area, above the 50-week average. The sell signal is still under management and the short is down 2.6% from entry: a swing trading case to follow week by week.
This week's summary
Last week's bounce found no follow-through: PayPal fell 4.1% and handed almost all of it back, while money flow slipped below zero after 11 positive weeks. PayPal stock is back under its 20-week moving average, in the 52.9 area, on contracting volume and with an ADX that has been falling for 6 weeks: a decline resuming without much drive. The Sell signal stays under management and the short is back in profit, by 1.6%. A technical analysis and swing trading case, with earnings due on October 27.
IQS Phase
71
in tension
Signal Strength
25
decline starting to make lower lows
Sizing
MINIMUM
Ranking
#98 / 175
US stocks
Trade P&L %
+1.60%
from signal to date, no stop loss
PayPal (PYPL) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 98th among the 175 sell signals for US stocks in our ranking, with a signal strength of 25 out of 100.
Sector context
SectorFinancials
Benchmark ETFXLF
Sector regimeweak phase
Performanceweekly -2.46% · monthly -7.23%
PYPL belongs to the financials sector (reference ETF XLF). The sector is classified weak phase according to our weekly reading.
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