Paypal has a landslide crash, wiping almost 50% of its market cap. Stock formed lower lows and lower highs and has been in a bearish trend since it started to drop from 210. We are looking to short Paypal from 128 till its previous lows at 90, almost a 25% gain. The structure is still bearish and once market taps the resistance, it’s an opportunity to go short.

A bearish pennant has been formed. The resistance trendline has been tapped and market is potentially rejecting. On the support trendline, we will be waiting for the breakout sells. Once market breakouts sell from the trendline, the confirmation for the sells will be authenticated and resonated.

The golden retracement level at the 75-78.6% is in confluence with the resistance level, where we are looking to short. This resistance level is a strong demand level for a short sell.

Both the EMA’s are bearish with a bearish death cross. After the breakout sell of the EMA 50, market has retested the EMA 50 and is heading down. EMA 200 is far above the current market prices, which indicates that the trend is solid bearish and we should ride the trend till any reversal is probable.

RSI and CCI, both are in an over-bought region. The bearish divergence is formed and market is absorbing the bearish pressure with the continuation downwards. When both the oscillators have a bearish divergence, there is a high degree of continuation towards the divergence direction.

Shorting the dropping Paypal

Apr 06 2022

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