PayPal Stock Break Out Analysis

In this episode of Stock Strategy Circle, I, John, delve into an exciting breakout opportunity with PayPal (PYPL). I kick off the discussion by highlighting the recent trade alert I issued to our subscribers, signaling a significant moment for this stock.

I provide a brief overview of PayPal's performance, noting its impressive rise to around $306 per share before experiencing a substantial sell-off starting in July 2021. While I typically avoid trading "bottom feeders," I explain that when a stock shows a bottoming formation and potential for a good trade, I am willing to make an exception. Currently, PayPal is nearing its 52-week high, and I anticipate it may reach this milestone by the end of the week.

As I analyze the weekly chart, I point out a head and shoulders bottom formation that has developed. I trace this pattern back to May 2023 for the left shoulder, with the head forming in October 2023, and the right shoulder expected to fill out through January 2024. I discuss the significance of breaking above this formation, which serves as a buy signal, followed by a shakeout period that occurred in July 2024. This shakeout is indicative of manipulation, a sign that the stock possesses hidden strength.

I emphasize the importance of understanding market manipulation, explaining that stocks that are not in play typically do not experience such activity. The manipulation observed in PayPal suggests that it is a stock worth considering. I detail the price movements, including a rally after the shakeout and a subsequent kiss of the support level, which further confirms the stock's underlying strength.

Switching to the daily chart, I analyze the trading activity, noting a spike in volume during the breakout, followed by a price close that indicates manipulative behavior rather than genuine market activity. I describe the subsequent sell-off and shakeout periods, leading to a strong rally that lasted nearly two weeks, followed by another consolidation phase.

I conclude that PayPal is undergoing manipulation, and I have decided to buy into the stock. I anticipate that it may experience another consolidation or shakeout, but I classify it as a campaign stock rather than a swing trade due to the strength of the weekly chart. I project that it could take six months to a year to realize significant gains, potentially doubling or tripling the investment.

Throughout the episode, I encourage listeners to stay informed about stocks like PayPal by subscribing to Stock Strategy Circle. I offer a 30-day trial for new members, allowing them to access my trade recommendations and review the historical performance of my alerts.

This episode encapsulates my analysis of PayPal's current market position, the implications of manipulation, and my strategic approach to trading this stock moving forward. Thank you for tuning in to Stock Strategy Circle!

00:00:00 - Introduction to PayPal Breakout
00:00:13 - Chart Analysis Overview
00:00:36 - PayPal's Historical Performance
00:01:07 - Head and Shoulders Bottom Formation
00:01:59 - Manipulation and Stock Strength
00:02:43 - Support Levels and Volume Profile
00:03:47 - Daily Chart Insights
00:04:59 - Consolidation and Shakeout Patterns
00:05:20 - Trading Strategy: Campaign vs. Swing
00:06:03 - Long-Term Outlook for PayPal
00:06:45 - Subscription Invitation and Conclusion