Earnings Play: PayPal

Key support at 171.00.

Crypto 1

On Monday, after market, PayPal (PYPL) is anticipated to report third quarter EPS of $0.94 compared to $0.61 a year ago on revenue of approximately $5.4 billion vs. $4.4 billion last year. The company operates an online payment firm and on October 22nd, Bloomberg reported that PayPal is exploring the acquisitions of cryptocurrency companies including BitGo. 

Looking at a daily chart, PayPal's stock price has been in a short-term downtrend since price made a record high of 215.83 last week on October 21st. The RSI is showing triple divergence, as price has made three higher highs since August and the RSI has made three lower highs. Price is currently below the 20-day simple moving average (SMA) and the 50-day SMA. Price will likely continue to decline until it reaches support at 171.00. Price will likely bounce off of 171.00 and retest the record high around 216.00. If price can breakout above 216.00 then price could reach for the first Fibonacci target of 252.00. On the other hand, given the negative divergence on the RSI and the weakness in the current overall market, there is a chance that price could breakout to the downside of 171.00. If that occurs it would be a bearish signal that could send price tumbling further to the 140.00 support level.        

Source: GAIN Capital, TradingView

More from Earnings


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.