Can PayPal surge 10% after technical breakout?
The digital payment sector is on fire as investors look towards the future. One stock that has benefited from this interest is PayPal. Many investors are now looking towards the company to gain cryptocurrency exposure on the back of PayPal’s push into cryptocurrencies for online payments.
Source: Admirals MetaTrader 5, PYPL, Monthly - Data range: from Jul 1, 2015, to Jun 17, 2021, performed on Jun 17, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Technically, the stock price looks very interesting. A bullish ascending triangle pattern has formed on the daily chart of the PayPal’s share price over the last few months, as shown below. Now, the stock is trying to break through technical horizontal resistance around $276.00.
If the price can break through the top of the ascending triangle resistance level and hold, traders may well be focused on the all-time high price of around $307.00, representing a more than 10% surge higher.
Source: Admirals MetaTrader 5, PYPL, Daily - Data range: from Sep 17, 2020, to Jun 17, 2021, performed on Jun 17, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Of course, there is the potential for a false breakout to develop. However, sentiment remains bullish as the Nasdaq 100 stock market index continues in an uptrend lifting the broader technology sector.
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