Asset Watch
Tuesday, February 6, 2024
Though layoffs are no fun for the departing staff, investors often celebrate the cost reductions. If higher profit margins are present in the future and productivity increases, the downbeat narrative could reverse.
To play it, PayPal’s 50-week moving average could hold all the cards. Amid the recent consolidation, the milestone ended the rallies in January and July 2023. A false breakout also occurred three weeks ago (which was sold the following week), and the stock reversed after touching its 50-week MA last week.
As a result, if the company delivers on earnings and/or provides optimistic guidance, a close above the 50-week MA could turn the key level into support and help fuel the next bull run.
So, will Feb. 7 mark an inflexion point for PayPal, or will the bears continue to feast on the embattled stock?