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- 1 PayPal stock price (NASDAQ: PYPL) fell 13% in October 2023.
- 2 PYPL stock price is in a strong downtrend.
- 3 PayPal Holdings Inc. will release quarterly results on November 1, 2023.
PayPal Holdings Inc.’s stock price (NASDAQ: PYPL) fell miserably in October 2023 and eroded a big portion of its market capitalization.
PYPL stock price forms a bearish pattern and hits a multi-year low. The stock price is trading below the shorter and higher timeframe EMAs indicating a downtrend.
PayPal stock price faces rejection from the 50-day EMA which shows that short sellers are active. Later, stock prices consolidated for a few days in a narrow range between $56.00 to $60.00.
Buyers tried to halt the downfall and prices displayed signs of short-term base formation.
Unfortunately, in the middle of October, sellers took over the control and dragged the price below the $56.00 support. It hurt the investors’ sentiment and invited further decline.
On a daily and weekly time frame chart, PYPL stock price is in a correction phase. It continuously declines by forming lower low swings and every minor pullback in the stock is getting sold off.
After analyzing the price charts of other financial technology companies. It is clear that Fintech sector stocks in America are in a downtrend. So, until the whole Fintech sector shows signs of revival, the possibility of recovery in PayPal stock remains low.
Will PayPal Stock Price Trap Short Seller After Earnings?
PayPal Holdings Inc.’s stock price (NASDAQ: PYPL) is down by 32.43% on a YTD basis and disappointed the expectations of the long-term investors.
In the previous quarter’s earnings, PayPal failed to meet the EPS estimates. Due to that, the PYPL stock price gap was down 12% in a single day and witnessed a massive sell-off.
The next earnings are scheduled on November 1, 2023. So the stock price might again react violently and a sharp up move or down move is possible.
Analysts estimated an EPS of $1.229 and revenue of $7.384 Billion. If the company beats the analyst estimates then PYPL stock price shot up and trapped the sellers.
PYPL Stock Price Does Show Any Signs of Reversal
PYPL stock price is forming a bearish pattern on a daily, weekly, and monthly time frame. Price action does not show any signs of recovery or upward reversal. The last hope for the bulls is quarterly earnings.
The surprising pullback rally in the PayPal stock is expected in November. However, until the price breakout of the 200-day EMA and sustains higher the reliability of the up move will remain doubtful.
Conclusion
PayPal stock price (NASDAQ: PYPL) is in a downtrend and hitting a multi-year low. The price pattern of the PYPL stock is highly bearish and does not show any signs of reversal.
The analysis suggests, that if a company beats the analyst estimates in earnings then the stock price might shoot up and trap the short sellers.
Technical levels
- Resistance levels: $60.52 and $65.86
- Support levels: $45.00 and $43.77
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
