PayPal Earnings Preview: These Are the Must-Know Levels

PayPal has had a difficult couple of weeks, but with earnings on deck bulls are looking for a rebound. Will they get it?
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After a painful couple of weeks, PayPal  (PYPL) - Get Report is trying to find some stability on Monday and has risen 2.75% so far in the session.

The rest of the week could be volatile, however.

PayPal is scheduled to report earnings after the close of trading on Monday. As if that isn’t enough, the U.S. also has its presidential election on Tuesday. It’s possible and even likely that we won’t know the final tally for at least a few more days.

Last but certainly not least will be the monthly jobs report due up on Friday morning.

Put it all together and PayPal investors have a lot on their plate this week. However, it starts with Monday. Can management deliver a beat and shed more light on its recently announced cryptocurrency plans?

If so, that may be enough to get the stock moving higher. Or at least hold strong during this week’s potential volatility.

Trading PayPal

Daily chart of PayPal stock.

Daily chart of PayPal stock.

Investors will notice a blue box on the chart above, referencing the prior post-earnings gap. The stock continues to toil in that price range, as it clings to the 100-day moving average as support.

While PayPal closed below that mark on Friday, it was a tough day in the markets, as FAANG stocks were hammered after earnings.

Now trapped between the 100-day moving average on the downside and the 50-day moving average on the upside, investors don’t have much of a read on PayPal stock.

However, the levels are clear in both directions.

On the downside, a break of the 100-day moving average puts uptrend support in play near $180. Below that and the September low is on the table at $171.63. Below that and the $160 breakout level and the 200-day moving average are a possible landing spot.

For longer-term investors, that type of dip is likely one to buy - barring a horrendous development in the business.

On the upside, bulls need to see PayPal reclaim the 50-day moving average and $200 level. Above $200 puts the $210 resistance level and all-time high in play at $215.83.

Should PayPal continue sailing higher, the 361.8% extension (from the March low to the February high) is on the table near $235.