Current trend

Shares of PayPal Holdings Inc., an American debit payment system, are adjusting at 66.00.

The company's published financial report for the first quarter recorded revenue of 7.7 billion dollars, which was higher than both the 7.51 billion dollars predicted by analysts and 7.04 billion dollars a year ago. Earnings per share (EPS) amounted to 1.4 dollars, exceeding the 1.22 dollars forecast and 1.17 dollars a year earlier.

After the publication of the report, leading analysts revised their estimates for PayPal Holdings Inc. shares. So, JPMorgan Chase & Co. experts maintained the issuer's rating at the "Outperform" level and raised the target price from 70.0 dollars to 77.0 dollars. Analysts made this decision due to a decrease in the number of active users by 1.0% to 427.0 million, which may indicate the achievement of an intermediate peak. Bank of America Securities experts also raised the target price from 68.0 dollars to 74.0 dollars but left the reliability rating unchanged at the "Neutral" level. Another similar forecast was given by analysts at Phillip Securities Group, downgrading the company's rating to "Accumulate" from "Buy" earlier and the target price to 75.0 dollars from 83.0 dollars earlier. Experts cite the key reason for the downgrade as the company's decision to include compensation in profit, as a result of which earnings per share (EPS) in subsequent periods will be lower by about 1.0 dollars.

Support and resistance

The corrective trend continues on the D1 chart of the asset, and the price is held below the resistance line of the ascending channel with the borders of 73.00–62.00.

Technical indicators hold the buy signal, and increasingly clearly confirm continued growth: the range of fluctuations of the EMAs of the Alligator indicator is actively expanding again, and AO histogram is forming corrective bars while being in the purchase zone.

Support levels: 63.50, 58.10.

Resistance levels: 67.80, 73.00.

Trading tips

In the event of a reversal and continued local growth of the asset and price consolidation above the maximum of 67.80, one may open long positions with the target of 73.00 and stop-loss of 65.00. Implementation time: 7 days and more.

If the asset continues to decline and the price consolidates below the support level of 63.50, one can open short positions with the target of 58.10 and stop-loss of 65.00.