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PayPal & Cisco: 🔄 Market Reversals, 🚀 Growth & Key Challenges

Hello Prop Traders! 🌟

Today, we’re diving into the latest market moves from PayPal and Cisco. From strategic partnerships and analyst upgrades to technical market reversals, these two giants are facing unique challenges and opportunities. Let’s explore the key trends and what they mean for traders.


 

PayPal Holdings Inc.: Candlestick Reversal Patterns and Strategic Partnerships


PayPal Holdings Inc. is under pressure from bearish candlestick formations, signaling potential downside in its stock price. However, beyond the charts, PayPal's recent strategic moves continue to shape its long-term growth. One of the significant developments in 2023 was PayPal’s announcement that users can now add their PayPal and Venmo debit and credit cards to Apple Wallet. This allows customers to use Apple Pay both online and in-store, marking a major milestone in PayPal’s efforts to capture the growing digital wallet market​.


This partnership not only enhances convenience and security but also aims to expand PayPal's reach within in-store payments, where Apple Pay has seen strong adoption. By providing a seamless payment experience and offering cashback rewards, PayPal positions itself to remain competitive as the digital wallet market continues to grow, with projections suggesting that digital wallets will overtake debit cards by 2027​.


Furthermore, PayPal’s Q2 2024 earnings report highlighted solid growth, with strong cash flow and increasing transaction volumes. These results underscore the company's strategy to expand into new payment solutions and enhance its digital offerings.


 

Technical Analysis: H4 and Daily Charts Overview:


H4 Chart: Bearish Patterns Dominate

On the H4 chart, PayPal shows a cluster of bearish candlestick reversal patterns such as the Bear Engulfing Pattern, Shooting Star, Evening Star, Bear Marubozu, Upside-Gap Two Crows, and Hanging Man. These patterns indicate strong selling pressure within the 74.15–69.70 price range.


  • Support Level: 68.03

  • Resistance Level: 71.37


If the price breaks below 68.03, further declines toward 64.23–57.03 may follow. Conversely, a break above 71.37 could signal bullish momentum toward 74.15–80.88.


Past performance is not necessarily indicative of future results. Use this data for reference only. ⚠️

 

Daily Chart: Bearish Reversals Forming

On the Daily chart, PayPal’s stock is still moving within a short-term uptrend, but bearish signals like the Dark-Cloud Cover, Bear Marubozu, Shooting Star, and Hanging Man are forming between 74.15 and 68.03, indicating a potential reversal.


If the stock breaks below 68.03, it could confirm the bearish trend, with the price falling toward 64.23–57.03. However, holding above 71.37 may suggest continued strength in the near term.


Past performance is not necessarily indicative of future results. Use this data for reference only. ⚠️

 

Cisco Systems Inc.: Analyst Upgrades Amid Legal Troubles


Cisco Systems Inc. has recently faced mixed market signals. A federal jury awarded Paltalk Holdings Inc. a $65.7 million verdict in a patent infringement case against Cisco, concerning its Webex products. The lawsuit, initiated in 2021, accused Cisco of infringing on a patent related to hybrid audio servers used in Webex, Cisco's popular video conferencing platform​. Although Cisco faces significant legal costs and potential appeals, the financial impact is likely to be reduced due to litigation fees​.

Despite this legal setback, HSBC analysts recently upgraded Cisco's rating from "Neutral" to "Buy" and set a new target price of $58.00, reflecting confidence in the company’s ability to maintain a steady growth rate of 11.6% annually between 2024 and 2027. This optimistic outlook is supported by Cisco’s robust Q2 2024 earnings, which exceeded expectations with a revenue of $13.6 billion.


 

Cisco Technical Overview (D1 Chart):Cisco is approaching a critical support line between 47.00–43.00. If the price consolidates below 48.10, it could continue declining towards 46.00. On the flip side, a breakout above 49.10 could lead to a rally towards 51.00.


Support and Resistance Levels:

  • Support: 48.10, 46.00

  • Resistance: 49.10, 51.00



 

Market Considerations


PayPal:

  • Bullish Scenario: A breakout above 71.37 could see PayPal's stock rise towards the 74.15–80.88 range, especially if strong transaction volumes and the digital wallet market expansion continue to support its long-term strategy.

  • Bearish Scenario: If PayPal's stock falls below 68.03, it could signal a further decline towards 64.23–57.03, driven by continued bearish candlestick formations and selling pressure.


Cisco:

  • Bullish Scenario: Should Cisco’s stock break above 49.10, it may lead to a rally toward 51.00, driven by positive sentiment from the HSBC upgrade and solid revenue performance in Q2 2024.

  • Bearish Scenario: A breakdown below the 48.10 support level could lead to further declines toward 46.00, particularly if legal challenges from the patent infringement case weigh on market confidence.


 

Conclusion: What to Watch for in PayPal and Cisco


Both PayPal and Cisco are at pivotal junctures. While PayPal’s stock faces technical challenges, its strategic partnership with Apple Wallet positions the company for long-term growth in the expanding digital payment space. Meanwhile, Cisco, supported by positive analyst sentiment, continues to perform well despite facing legal challenges that may impact its short-term performance. As market conditions evolve, traders should keep a close watch on key support and resistance levels for both stocks, as these indicators will likely guide future trading decisions.


🔔 Remember to assess all relevant factors and conduct thorough research before making any trading decisions.



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