Here’s how you get paid off with PayPal (PYPL). (January 03, 2018)


I want to look at PayPal ( NASDAQ: PYPL ) today. This is a stock that we have had on our growth list from day one. It was actually, right back here was when I started this list of growth stocks that are in pretty good uptrends. I have my own criteria but none of it is a secret or proprietary, I look for strong growth, consistent growth over the years is both earnings and in revenues. I want to see them growing and accelerating in their growth as well as a few other fundamental things. And then we look industry, whether they are an innovator, and PayPal ( NASDAQ: PYPL ) certainly is, the overall market, and then, of course, all of that sums up to the chart.

This stock had been doing really well and then (spoiler alert I am going to tell you to buy it), it had been doing really well, high volume move, which wasn’t a good thing. Then higher a higher volume move here so that is a problem. This is institutional distribution but it held here. We will take a walk down memory lane here; note the 50-day moving average, this is the red line, it has always held up. A little simple to just be looking at the 50 but hey, it works.

Now we are up to present day. So here is the deal: This stock right now is in a wicked uptrend, you can see it here, $80.00; that is really the stock’s resistance level. Right here at $80.00; I would trade this now. I would actually buy this stock; I wouldn’t wait for it to move above 80.00. I would take a small position now, protect it with about a 5 percent stop, right around 72.50, something like that. Then if the stock starts trading above this high, the high is 79.39, I wouldn’t even wait till 80.00, wait till 79.40. If it starts trading up above there then add to your position. Now you have a decent position size on with a low-risk; where you stop was pretty close to this and then you are here for the next leg higher.

By the way, if the stock doesn’t break out here, and give you reason to buy more, then you just have a small position. You don’t have a bunch of money tied up in this, which is good because it isn’t working anyway, it is just not, not working. And then if you get stopped out, hey, nothing ventured, nothing gained. That is how I would trade PayPal ( NASDAQ: PYPL ); that is how I am trading PayPal ( NASDAQ: PYPL ).

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