Today we focus on PayPal (ticker PYPL).
On March 14th 2022 we spotted a large dark pool activity of 2 million shares at 97.45.
Dark pool activities, which we refer to as block orders, are institutional positions. Dark pools don't tell us the direction, just the presence of an institutional position.
How to we how to trade it? We have to wait for the breakout or break down confirmation.
A breakout above a specific resistance level, gives us the indication that the trade is bullish. A break down below a specific support, level gives us the indication that the trade is bearish.
With regards to PYPL, price was oversold (dropped from $310 to $92 in less than 8 month) and has been forming a base above 92.
Based on that analysis, and the presence of the dark pull activity, we initiated a swing trade (long).
On the following day, price popped the $101 breakout level, triggering a bullish confirmation.
In four days price reached our three targets and produced +19% gain.
Watch this video to get the technicals, our trade progression and what to expect moving forward.Good trading!
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