Technicals Bode Well For PayPal: $144 Price Objective
Shares of PayPal have sat out the recent market rally, but a number of technical signals point to a turnaround for the giant payment processor. The stock has been in a well defined rising channel since its 2014 IPO, and after a 20% pull back from its $120 high, shares look poised to retest those levels. The first price objective of $120 represents 11% upside from current levels. The second price objective of $144 is the 423.6% extension level from the highs and lows of 2018. $144 represents 33% upside from current levels.
On the daily view, PayPal is testing its 200 day moving average. A decisive break above the 200 day would signal a march to $120 is next. On the weekly chart, RSI is curling positive, and the stock is finding support at its 50 week moving average. PayPal offers a solid risk/reward profile at current levels, given the positive technicals and secular trends behind digital payment processing.