Currently, if you are a PayPal Holdings, Inc. member, you’re probably thinking, “What is PayPal?” Well, it’s an American multinational financial technology company that operates an online payment system in most countries. It also serves as an alternative to traditional paper methods.
EPS forecasts for Pypl stock are expected to increase by roughly 18% in 2021. This might not sound like much, but PayPal is still one of the largest digital platforms for money transfer services. Moreover, the company expects to add between 8 and 10 million new active users in the year ahead. As such, they are expected to report their best financial quarter in quite some time.
While the company beat its shareholders’ expectations, PayPal’s stock has yet to reverse its downtrend. The company has also announced numerous productivity initiatives, including a new eCommerce platform and an automated payments service for small businesses. But if it’s true that the payment-processing industry is maturing, it’s no surprise that its competitors have caught up.
3.2 times sales
Despite the recent market volatility bout, PayPal has remained the dominant fintech player in the space. Its aptly named cloud computing services continue to provide online payment solutions for small to medium-sized businesses. It is also home to an impressive 426 million active accounts.
PayPal’s valuation has never been better, especially compared to its five-year average of 8.5 times sales. The company is still a multibillion-dollar behemoth and has the potential to become even more significant in the years to come. With a current dividend yield of over 6%, investors can look forward to a hefty payout in the years to come.
While the company has managed to maintain its share of the online payment market, there are new entrants in the space, such as Amazon, which launched a unique shopping benefit for its third-party websites, and mainstream banks, such as Chase, that are targeting small and medium-sized businesses with a slew of new products.
Traders often use triangles to determine when to short or buy an asset. In addition, they can be used for both continuation and reversal patterns. The key to using triangles is being able to recognize them. The three main types of triangle patterns are descending, symmetrical, and ascending.
A descending triangle is formed when a stock’s price falls below the lower trendline. To create this type of pattern, the lower trendline must be horizontal. The upper trendline is formed by connecting the two highest points. It’s important to note that the trend line may not click on all topics. The first trendline acts as the resistance point, while the lower trendline acts as support.
The symmetrical triangle is a neutral pattern. The result usually follows the previous trend. It provides trading opportunities to both the long and short sides of the market. When this pattern is formed, a breakout should occur to the upside. This can signal the start of a new trend. The flight can also signal a trend reversal.
Bullish Butterfly pattern
Unlike other reversal patterns, the butterfly pattern can be used to pinpoint a Take Profit level. If it is a bullish butterfly, the Take Profit should be placed at Point A (defensive movement). If it is a bearish Butterfly, the Take Profit should be at Point D (aggressive action).
If you are a new trader, placing the Take Profit at Point B is better. The price should be close to the retracement level of the AB line. You can also increase your Stop Loss to 20 pips in high volatility.
A key element in harmonic patterns is the use of Fibonacci tools. The tool recommends adding 78.6% and 88.6% levels to the AB line.
Another essential part of the butterfly pattern is the breakdown. This is when the X-A leg breaks down, and the A-B leg retraces a portion of the X-A leg. The retracement level for the AB line is 0.786. This can be a good retracement level for the butterfly pattern.
Bullish Bat pattern
Traders have a few choices in using the bullish Bat pattern on Pypl stock. They can either extend the profit target or set a take-profit level. Whichever you choose, you have to know how to draw the pattern correctly. Here are the key factors to remember:
The Bat chart pattern is a five-point retracement structure. The most important part of the pattern is the C-D leg. Unlike the Gartley design, which has a relatively small retracement, the Bat has a stronger retracement.
The actual Bat pattern has a few key components. Point A is the starting point of the way. It is a new Fibonacci retracement. It can be calculated to be around 1.618% to 2.618%. It is best to avoid drawing the retracement below this level.