PAYPAL Elliott Wave Analysis - How Far Will Recovery Go?
PayPal Inc. is a leading force in digital finance, transforming online transactions since its inception in 1998. With a reputation for security and user-friendly services, PayPal facilitates seamless global payments for individuals and businesses alike. From peer-to-peer transfers to e-commerce solutions, PayPal remains a trusted name, empowering millions worldwide to transact securely and effortlessly.
PAYPAL Elliott Wave Analysis - Weekly Chart. April 2024
Between July 26, 2021, when PayPal exchanged for $310.16, and October 23, 2023, its stock price plummeted to $50.25. That was over 80% in the red, making it one of the worst-performing stocks on NASDAQ in recent years. However, looking at the chart structure through the prism of the Elliott wave theory, the decline is in the last leg of a corrective cycle that followed a bullish impulse prior. The weekly chart captures this clearly - a bullish impulse to complete wave (I) of the super cycle degree and now a correction for the corresponding wave (II). Price is currently in the cycle degree sub-wave c of (II) as a zigzag correction. Taking a closer look, the price is precisely in wave ((2)) of c of (II) correcting wave ((1)) of the primary degree. This implies that recovery is expected in the coming weeks but should be limited.
PAYPAL Elliott Wave Analysis - Daily Chart. April 2024
The daily timeframe shows the sub-waves of ((2)) from October 27, 2023. The chart shows a path for a double three structure for wave (B) of ((2)). Wave Y is expected to reach at least the equality of W from X (at 55.76) before wave (C) begins upwards. However, if the current dip from March 27, 2024, fails to reach the equal leg, traders should prepare for an alternative scenario as shown below.
PAYPAL Elliott Wave Analysis - Weekly Chart. April 2024. Alternative View
Alternatively, Wave (B) could have been completed on August 2, 2024. Thus, the current surge is part of an impulse rally to complete the wave (C) of ((2)). Provided the current dip does not break below wave B low, this scenario is a solid option.
In conclusion, PayPal is in a medium-term recovery that could continue to the $70-80s region in the coming weeks. However, a few weeks of decline could precede the rally. Overall, the long-term corrective bearish cycle should resume after this recovery.
Edited 22 Apr 2024, 23:19
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