Is PayPal Stock a Buy or Sell?

Is PayPal Stock a Buy? Swing Trade Setup for PYPL Amid Oversold Conditions

Is PayPal Stock a Buy or Sell? Market Context and Trade Setup

PayPal Holdings, Inc. (NASDAQ: PYPL) has recently seen a significant decline, pushing it into oversold territory based on technical indicators. With the stock approaching a key support level, swing traders are evaluating whether PayPal stock is a buy at these levels or if further downside risk remains.

At the time of writing, PayPal stock is trading at $71.05 (the close of last week), a staggering 77% lower than its all time high of $310.16 and almost 25% lower than its 52-week high.

While many traders might open up the daily chart on PYPL and see continued bearish momentum, markets have a way of surprising when stocks become oversold. In this case, RSI levels indicate oversold conditions, and we’re also identifying key historic volume profile levels that suggest a potential bounce for PYPL stock.

PayPal Stock Technical Analysis: Key Support and Resistance Levels

• Support Zone: $67.50 – $68.50 (historical support and previous high-volume trading zone)
• Resistance Levels: First target at $72.68, followed by $75.00
• RSI Indicator: The Relative Strength Index (RSI) for PayPal stock is currently oversold, suggesting a potential short-term rebound.
• Volume Analysis: While recent selling pressure has been strong, historical trends indicate liquidity tends to return at key support levels.

Swing Trade Strategy for PayPal Stock (PYPL)

Entry Plan: Scaling Into the Trade

Traders using a scaling-in strategy can accumulate shares at different price points:

• First Buy Order: 100 shares at $68.20
• Second Buy Order: 200 shares at $67.98
• Third Buy Order: 300 shares at $67.79
• Average Entry Price: $67.92 (if all orders are filled)

This strategic entry plan follows a Fibonacci-weighted approach, increasing exposure as the price nears strong historical support levels.

Risk Management & Profit Targets for PayPal Stock

• Stop Loss: $67.24 (-1.0% risk from entry)

• Primary Profit Target: $72.68 (+7.0% potential gain)

• Risk/Reward Ratio: 7:1, providing a strong risk-adjusted return opportunity.

• Runner Strategy: Those who wish to leave a small runner can consider keeping only 20% of their position after reaching the initial profit target, while moving the stop to the entry level to protect gains.

• Partial Profit-Taking Strategy: For those seeking incremental profit-taking levels, consider:

  • $70.39 – Just below the VWAP low from Friday, February 28th, 2025.
  • $70.63 – The VWAP at Friday’s close.
  • $71.05 – The Point of Control (POC) from Friday.
  • $71.40 – Another key partial profit-taking level.
  • Scaling out of a position is a smart risk management tactic to secure profits without waiting for a single major move.

• Extended Profit Targets for a Stronger Rally in PayPal Stock: Traders looking for longer-term gains may consider:

  • $77.19 – A resistance level below major key zones, including the Value Area Low (VAL) and POC from February 17th.
  • $80.05 – The VWAP from February 4th, another strong resistance level.
  • $80.97 – Just below the Value Area High (VAH) of February 4th.
  • $83.00 – The Value Area Low (VAL) of January 13th, before the recent earnings-related drop in PayPal stock.

Is PayPal Stock a Buy Right Now? Key Considerations for Traders

• This is NOT a long-term investment call. Readers should not be confused—this setup is not claiming PayPal stock is an amazing long-term buy or that a major bullish reversal is happening. Instead, this is a short-term tactical swing trade targeting a temporary bounce due to oversold conditions and historical key levels where market participants are expected to step in.
• Patience is Key: While PayPal stock may not seem like an immediate buy, oversold conditions and key support levels suggest the potential for a short-term bounce.
• Market Conditions: PayPal stock’s movement will also be influenced by the broader Nasdaq index and tech sector sentiment.
• Earnings Impact on PYPL Stock: PayPal’s last earnings report on February 4th, 2025, led to a negative price reaction. After about a month of declines, we are now watching for a potential short-term move higher.
• Adaptability for Traders: While some traders may follow this exact strategy for buying PayPal stock, others may use it as an orientation—adjusting profit targets, stop-loss levels, or timeframes based on real-time market developments. Those analyzing intraday price action may want to wait for confirmation of reversal signals around the $67.50 – $68.50 range.
• Numbers Are NOT Random: The price targets mentioned are not arbitrary; they are well-rooted in key price levels identified through volume profile analysis.

Final Verdict: Is PayPal Stock a Buy or Sell?

PayPal stock is currently in a high-probability swing trade zone, approaching key historical support levels while RSI remains oversold. While traders should always manage risk, the technical setup suggests a strong chance of a short-term rebound.

For swing traders looking to buy PayPal stock, this plan provides a structured entry, stop-loss levels, and a profit-taking strategy. However, markets are dynamic, and traders should monitor real-time data for additional confirmation.

As always, implement proper risk management and adjust position sizes based on individual risk tolerance. Trade at your own risk.

This article was written by Itai Levitan at www.forexlive.com.