$PYPL Part B - continuation and technical analysis:
Since the beginning of the year, the stock has been trading sideways with volatility between $220 and $310.
On the day after earnings (8/11), the stock gapped by 7% and was stopped at the $200 support area (50% Fibonacci retracement) - a psychologically strong number.
The stock is at a significant test point: a very strong support area ($196-$200); however, if it breaks, it is likely that we will meet at the next significant support level - the $170-$168 area. There is a classic and natural scenario that in the coming days the stock will aim to close the gap.
Resistances on the way: $215 - closing the gap ($222-$225) - an area that served as support since the beginning of the year and will now serve as resistance.
The stochastic oscillator indicates oversold conditions - a state of accumulation and buying 'low'.
Since the Pinterest affair, trading volume has increased by hundreds of percent - which will likely add to the stock's volatility.
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