Paypal Surges 4.66% to $74.61 Marking Fourth Straight Gain Totaling 11.93%

Paypal Holdings (PYPL) recorded a significant 4.66% gain on October 7, 2025, marking its fourth consecutive advance with an 11.93% rally over this period. Closing at $74.61 on elevated volume (~31.9 million shares), this momentum warrants comprehensive technical evaluation across multiple frameworks.
Candlestick Theory
The recent four-session rally formed a bullish "Three White Soldiers" pattern, accelerating after a Hammer candle on September 30 ($66.85 low, $67.06 close) signaled exhaustion of prior selling pressure. The October 7 candle peaked at $75.68 before closing at $74.61, establishing this $75.68-$75.70 zone as immediate resistance, evidenced by the extended upper wick. Support is layered at $71.29 (October 6 close), with stronger historical support near $68.93-$69.25 corresponding to the September-October consolidation base.
Moving Average Theory
PYPL trades above all key moving averages: the 50-day SMA (approx. $70.80), 100-day SMA (~$70.20), and 200-day SMA (∼$68.50). Significantly, the 50-day crossed above both the 100-day and 200-day averages in early September, while the 100-day overtook the 200-day in late September, confirming a bullish "golden cross" regime. This alignment suggests a durable uptrend, with the 50-day SMA now acting as dynamic support.
MACD & KDJ Indicators
The MACD histogram has trended upward since mid-September, with the MACD line firmly above its signal line as of October 7, indicating strengthening momentum. Concurrently, KDJ metrics show %K (86) and %D (80) entering overbought territory (>80). While this reflects strong near-term bullishness, the KDJ’s overextension may heighten susceptibility to profit-taking. No bearish divergence is observed—both oscillators align with the price uptrend.
Bollinger Bands
Volatility expanded notably during the four-day rally, with price breaking above the upper Bollinger Band ($72.80 on October 6), a rare occurrence signaling extreme bullish momentum. Bandwidth widened after a prolonged contraction in September, validating the breakout’s vigor. The 20-day midline ($70.70) now serves as primary support. The extended breach suggests potential near-term consolidation but no immediate reversal signal.
Volume-Price Relationship
The rally was validated by steadily increasing volume, culminating in October 7’s 31.9 million shares—the highest single-day volume since late July. This surge during upside moves indicates institutional accumulation, contrasting with lower volume during September’s pullbacks. Volume support confirms the trend’s sustainability, with accumulation/distribution metrics trending upward.
Relative Strength Index (RSI)
The 14-day RSI reached 75 on October 7, entering overbought territory (>70). While this suggests near-term exhaustion risk, its warning nature is nuanced: similar overbought readings in July preceded a 17% correction, but the current bullish moving average alignment and volume profile may permit extended overbought conditions. Traders should monitor for potential consolidation, but RSI alone doesn’t invalidate the trend.
Fibonacci Retracement
Applying Fibonacci to the April 9 low ($56.51) and January 17 high ($93.25), key retracement levels emerge at $74.88 (50%) and $79.21 (61.8%). The October 7 high ($75.68) approached the 50% threshold before retracing to close below it, reinforcing $74.88-$75.70 as formidable resistance. A sustained breach above this zone would target $79.21, while pullbacks may find support at the 38.2% level ($71.20), now aligned with the 50-day SMA.
Confluence and Divergence Observations
Confluence is pronounced at $71.20-$71.30, where Fibonacci 38.2%, the 50-day SMA, and the October 6 close align, creating a high-probability support zone. Resistance at $74.88-$75.70 combines Fibonacci 50%, psychological resistance, and the Bollinger Band breakout threshold. No material divergences exist—momentum, volume, and trend indicators uniformly support the bullish structure. The KDJ and RSI overbought readings advise caution but remain secondary to primary trend confirmation from moving averages and volume.