PayPal - Multiple Signals Pointing to a Potential Bottom!

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I’ve just entered a position in PayPal, and the reason is that several overlapping factors are lining up in a way that suggests a potential bottom may be in.

First, it looks very likely that Wave (2) is complete. The stock tapped the 61.8% Fibonacci retracement level with precision and has held that level over the past few days – all while the RSI has been climbing, which is a strong bullish divergence signal in my book.

Second, PayPal just touched last year’s VWAP level perfectly, which I view as another strong technical indicator for a potential reversal.

How far this move could go is still unclear, but the open gap above is definitely something I’m watching closely. For that to be in play, $71 needs to be reclaimed. And from here on, $66 should not be touched again.

That’s my plan – and that’s how I’m trading it. Let’s see if the market plays along.

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