Paypal Holdings Inc (NASDAQ: PYPL)

PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products.

Take a look at the 1-year chart of PayPal (NASDAQ: PYPL) below with added notations:

PYPL has hit the same $93 resistance area (red) multiple times during the past several months. The stock has recently turned higher, and now is sitting just a few tics below that $93 level. A solid close above the resistance should lead to another leg higher for PYPL.

The Tale of the Tape: PYPL has a 52-week resistance at $93. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT