PayPal (Nasdaq: PYPL) is a worldwide online payments company founded 18 years ago. It had its first IPO in 2002, but in this article, we will only be looking at the technical picture for PYPL since its second IPO 2 years ago which valued the company at $46.6 billion. So, with the only data available since 2015, we need to present the current different structures that can be labeled in the daily chart and then make a path accordingly.
Paypal Diagonal Structure
Looking for a clean 5 waves move is hard these days but switching to the leading diagonal is an easy choice as corrective 3 waves structure is filling the charts. Accordingly, PYPL can be ending the cycle from 2016 low around equal legs area 48.67 – 51.17 as wave (3) without divergence before a 3 waves pullback can take place. Paypal wave (4) should remain within the bullish channel and the pivot at 38 low needs to remain in place for the stock to be able to resume the rally for new highs after ending the correction.
(Click on image to enlarge)
Paypal Double Three Structure
Using 2016 correction as a connector, we can label PYPL as a 7 swings structure from August 2015 low which already reached the extreme area and currently entering equal legs 48.72 area from June 2016 low. The bullish cycle will remain alive as long as the pivot at 39.02 low is holding which means the stock can ideally do a short term 3 waves pullback in wave ((iv)) of C before a final thrust higher toward 51.22 – 55.27 area. There PYPL should be ending the whole cycle from 2015 low and a larger pullback can take place.
(Click on image to enlarge)
Paypal Triple Three Structure
PYPL can also be counted as 9 swings structure if we use double connectors supported by oscillations, so the stock is then entering the target area for wave (Z) = wave (Y) = wave (W) around 48.67 – 52.75 area and will be then ending the cycle from 2015 low. So it will be the same result as mentioned in the case of the double three structure which is a big correction in wave ((X)).
