If we look at the PayPal (NASDAQ:PYPL) daily chart, we can see the extension of the downtrend since the Oct 18 selloff in regards to the false rumors about acquiring Pinterest (NYSE:PINS), its price slowly and steadily fell lower and lower, being unable to contain the losses. It managed however since Nov. 3 to form a support level right above the $225, showing signs of consolidation ahead of today’s announcement. It managed to occasionally rise back up above the $232 level twice, but the backlash was immediate, forcing its price back down at the support level. Its last traded price was $226.
Paypal has scheduled a third-quarter earnings announcement today. If the earning expectations are surpassed, we could expect the price to move upwards, towards the $232 price level.
Today we could expect a move upwards near the $230 resistance level.
If however, it fails to hold above the current price range of $226 then a case can be made for moving below the support level at $225.