PYPL. great earnings. now to rally?
PEG - PYPL Trade Idea
Setup: PEG Continuation
Key Criteria:
- Market cap: $10 billion+
- High Relative Volume on Close (2Rvol+)
- Ideally, the price has hit a key daily/weekly support or resistance zone and has not gapped into a range (mid of a range).
- Stock is "in play" or on the verge of forming a new trend.
Trade Details:
- Position: Long
- Entry: $64.27
- Stop: $62.43
- Risk: 0.75% of account equity
- Order Type: Sell Stop Limit Order
- Risk per share: $1.84
Targets:
- $68.00 (2R) – This is the closest large level.
- $70.66 (3.5R) – This level is the pivot high of the breakout.
Exit Techniques:
- Scale 33% of original position size at 2R.
- Scale 33% of original position size at 3.5R.
- Exit the remaining 34% of original position size using the new 3-day low after new high method (ask if unsure).
Reasoning:
- PayPal (PYPL) is potentially at a pivotal breakout point from the trading range it has been in since mid-April 2023. The top of this range is around $70, with a bottom between $50 and $55. Currently, PYPL is pushing above a weekly bearish Fair Value Gap (FVG) and a significant volume point of control, which might indicate the start of a breakout.
- This setup is compelling due to PayPal’s recent earnings report, which shows a turnaround from -$350 million in free cash flow (FCF) to $1.4 billion, along with increased revenue, operating income, and payout volume—all while maintaining a static account base. This positive shift in fundamentals may not be fully reflected in the current price, providing an opportunity for the stock to gain momentum and move towards the $70 level.
Stop Loss:
- The stop loss will be updated after the first profit target (2R) is hit and shares are scaled out.
Additional Notes:
- Set orders to automatically scale out shares. If the take profit (TP) is hit and you are still holding the full position size, please manage your own risk accordingly.
- Any questions, please feel free to ask. I am here to support and help you understand how to be a consistent trader.
Position Sizing:
- I will be buying 203 shares, costing me $13,077.52.
- Risk on this trade is $374.40, aligning with 0.75% of equity (accounting for losses on all current trades).
Setup: PEG Continuation
Key Criteria:
- Market cap: $10 billion+
- High Relative Volume on Close (2Rvol+)
- Ideally, the price has hit a key daily/weekly support or resistance zone and has not gapped into a range (mid of a range).
- Stock is "in play" or on the verge of forming a new trend.
Trade Details:
- Position: Long
- Entry: $64.27
- Stop: $62.43
- Risk: 0.75% of account equity
- Order Type: Sell Stop Limit Order
- Risk per share: $1.84
Targets:
- $68.00 (2R) – This is the closest large level.
- $70.66 (3.5R) – This level is the pivot high of the breakout.
Exit Techniques:
- Scale 33% of original position size at 2R.
- Scale 33% of original position size at 3.5R.
- Exit the remaining 34% of original position size using the new 3-day low after new high method (ask if unsure).
Reasoning:
- PayPal (PYPL) is potentially at a pivotal breakout point from the trading range it has been in since mid-April 2023. The top of this range is around $70, with a bottom between $50 and $55. Currently, PYPL is pushing above a weekly bearish Fair Value Gap (FVG) and a significant volume point of control, which might indicate the start of a breakout.
- This setup is compelling due to PayPal’s recent earnings report, which shows a turnaround from -$350 million in free cash flow (FCF) to $1.4 billion, along with increased revenue, operating income, and payout volume—all while maintaining a static account base. This positive shift in fundamentals may not be fully reflected in the current price, providing an opportunity for the stock to gain momentum and move towards the $70 level.
Stop Loss:
- The stop loss will be updated after the first profit target (2R) is hit and shares are scaled out.
Additional Notes:
- Set orders to automatically scale out shares. If the take profit (TP) is hit and you are still holding the full position size, please manage your own risk accordingly.
- Any questions, please feel free to ask. I am here to support and help you understand how to be a consistent trader.
Position Sizing:
- I will be buying 203 shares, costing me $13,077.52.
- Risk on this trade is $374.40, aligning with 0.75% of equity (accounting for losses on all current trades).
Penafian
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