Paypal Fibonacci TradePaypal has broken bearish trend, and is attempting to cross 50% retrace from most recent drop and has met strong resistance. This chart has bounced off a long term Fib trendline of 50%, which we can expect profit taking at 88%, 100% and 161.8%. Short term, the 5MA has crossed over the 8MA on the 1D charts, which is a bullish indicator, as well as a W bottom, with a breakout above a trendline. We saw a very large volume of trading on October 24, enough to indicate a pivot.
We can expect strong resistance at this 50% ($108), which may cause a failed bullish signal, but I expect the previous resistance to turn into support, as the broken trendline will now become a support zone. We may see a bounce off this support zone, and I have marked the short term Fib Retraces with RED for resistance zones. Strong resistance at $108, and $111.
The green lines indicate targets, 88% and 100%, or $116, and $121.
This trade is a long term Fibonacci Bounce off the 50% line from December 24 2018 (low), until July 16 2019 (high).
