PYPL bullish Signal: Dragonfly Doji + CCI Divergence

1 nov 2021

PYPL is currently on a downtrend, but there are multiple signs that the current trend might reverse.
Price is falling while the Commodity Channel Index is rising - this is a very obvious divergence ... and an indication of a potential trend reversal.
Taking a closer look at CCI and Price, we also see hidden divergence a couple of days ago (lower lows vs higher lows).
During the latest divergence, we spot an interesting candle chart pattern: a Doji. Dojis are usually indicating indecision - in this case the long-legged Doji almost looks like a Dragonfly Doji.
In combination with a divergence, this can be seen as a rejection of lower prices and as a bullish signal.
The current monthly Pivot has not yet been touched, so the price might rise to this Pivot point at 245.97 .

Interestingly, a few days ago, on October 12th, we had an almost identical setup: (minor) downtrend, bullish divergence, Doji, untouched pivot. The candle following the Doji was still red but the price went up to the monthly pivot.