After a lengthy sell-off, Paypal (PYPL) may have turned the corner. The daily chart above shows how a perfectly formed Gartley pattern turned into a Butterfly. We're bouncing off the 161.8% Fibonacci extension on both the green and yellow ranges. The previous 2 candles show a Doji Gap Up candlestick pattern and a close over the 8ema. Today we see a continuation of an up swing, but the day's only half over. It also looks like the ADX DI+ is crossing over the DI-. And Stochastics is still low. All this is Bullish.
However, price is currently up against the 20sma on the Daily chart. It could easily reject off this level and head back down. So this is a critical inflection point. It'll be important to see if we cut through the 20sma and continue upward, or make new lows.
I took a flyer (high risk trade) on PYPL and got a Jan 220/230 Call spread on 11/30/21 for $0.63. It currently (12/8/21 12:53 ET) has a Bid/Ask spread of 1.08/1.18. I'll be looking to add to this position if we continue on a good trajectory.
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