Paypal Rebounds 3.55% as Bullish Candlestick Signals Potential Reversal

Paypal Holdings (PYPL) advanced 3.55% to close at 73.89 in the latest session, rebounding from an intraday low of 71.54 against a high of 74.31. This recovery follows heightened volatility earlier in the week.
Candlestick Theory
The 7/14 session formed a robust bullish candle with a long lower wick (71.54 low, 73.89 close), indicating rejection of prices below 71.5 after the 7/11 breakdown candle (70.79–75.20 range). This establishes 70.80–71.50 as immediate support, with resistance crystallizing near 75.00–76.50 – aligning with July’s congestion zone. The hammer-like pattern at support suggests potential bullish reversal confirmation if followed by a close above 74.30.
Moving Average Theory
The 50-day MA (72.90) crosses bullishly above the 100-day (71.20) and 200-day (68.80), confirming an improving intermediate trend. Price reclaiming the 50-day MA after brief dips signals underlying strength. However, the 73.89 close remains below the 20-day EMA (74.20), warranting caution until sustained above this short-term trend gauge.
MACD & KDJ Indicators
MACD registers a bullish crossover as the histogram turns positive for the first time in three weeks, diverging from price’s 7/11 low. KDJ’s %K (58) and %D (42) curve upward from oversold territory. Though not yet overbought, this momentum shift reinforces the candlestick reversal signal. Confluence exists as both oscillators agree on building upside momentum.
Bollinger Bands
Bands contracted sharply to a 5.5% width (70.20 lower, 75.70 upper) ahead of the 7/11 breakdown, a volatility compression preceding directional resolution. Price rebounded from the lower band, but remains near the 20-BMA midline (72.95). A close above 74.30 would position PYPL in the upper band’s expansion zone, suggesting bullish follow-through potential.
Volume-Price Relationship
The 7/14 rebound occurred on 12.98M shares – 40% below the 7/11 sell-off volume (21.88M). This divergence raises sustainability concerns for the bounce. Validation requires higher volume on upward continuations. Supportive volume appeared at the 71.50 zone (7/14 low), though accumulative volume trends remain neutral below the 20-day average.
Relative Strength Index (RSI)
14-day RSI (51) rebounded from near-oversold (35) but remains neutral, mitigating immediate overbought risks. Divergence emerged as RSI’s higher low on 7/14 contrasted with price’s lower low relative to 7/11. While not yet signaling strength above 60, this hidden bullish divergence supports reversal potential. Extended consolidation would help normalize momentum.
Fibonacci Retracement
Applying Fib levels to the July downtrend (76.22 high to 70.79 low) shows PYPL closing above the 50% retracement (73.50). The 61.8% level (74.15) aligns with July congestion and Bollinger midband resistance. From the annual swing (89.51 high to 57.22 low), the 73.37 level (50% retracement) now acts as support, coinciding with the July 14 low – a significant confluence zone.
Confluence exists between the candlestick reversal, Fibonacci 73.50 support, Bollinger lower band, and momentum indicator recoveries, strengthening the bullish reversal thesis. However, the volume-price divergence and proximity to the 74.15–75.00 resistance band warrant monitoring for breakout confirmation or potential failure at these levels.