PayPal Reversal It's Finally Here

PayPal is finally showing sings of reversal after hitting a multi year low and in the last trading session broke the head and shoulders formation neckline.

Prepare for a bullish trend in the following years

The inverse head and shoulders pattern consists of three troughs, with the middle one (the head) being the lowest and the two on either side (the shoulders) being roughly equal. The pattern is completed when the price breaks above the neckline, which is the resistance level that connects the highs of the two shoulders.

The pattern is considered valid when the following conditions are met:

• The volume is higher on the left shoulder than on the head, and higher on the right shoulder than on the left shoulder.

• The volume is higher on the breakout than on the right shoulder.

• The price target is calculated by adding the height of the pattern (the distance from the neckline to the head) to the breakout point.

PayPal is a strong company with a solid growth potential, and the technical analysis suggests that the stock may have formed a bullish reversal pattern, which could signal a buying opportunity. However, investors should also consider the fundamental and external factors that may affect the price, and use proper risk management techniques to protect their capital.