Paypal Technical Analysis (NASDAQ:PYPL)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. The Paypal stock price data and volume are plotted in PYPL stock charts and these trading charts form the basis of technical analysis.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Paypal. The technical analysis form of Paypal stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Paypal Moving Average
Moving averages help predict the price direction of PYPL stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $86.45 is above the price of $85.45.
Paypal Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the PYPL stock. Currently the stock price of $85.45 is in the lower range of Paypal bollinger bands.
Paypal Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Paypal MACD indicator can be used to identify bullish and bearish trends for the stock.
Paypal Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of PYPL stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.