DailyPlay – PayPal Inc (PYPL) – October 8th, 2021

The bearish DailyPlay for Friday, October 8th is PayPal Inc (PYPL). PYPL is part of the Technology sector that has experienced a 3.9% decline in the last month. 

Technical View

• Breakdown of $267 support with high volume and failed retest indicates move lower.
• Weak Technical Score – 4 out of 10
• Bearish 1M and 6M trends

Fundamental View

• Trading at very high valuations (64x Earnings)
• Significant margin expansion needed to justify valuation
• Earnings Nov 1, 2021

View PYPL Trade

As this is a Credit Spread, look to take profits at 50% gain and cut losses at 100%:

• Take Profits: $3.65 Debit
• Stop Loss: $14.60 Debit

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