PayPal stock slips after analyst downgrade

PayPal (PYPL.US) stock fell nearly 2.0% % after Jefferies downgraded its stance on the digital payments company to “hold” from “buy”, and lowered its price target from $255.00 to  $200.00 citing the normalizing of consumer conditions and limited catalysts ahead. Analysts are skeptical about PayPal's medium-term targets and do not see any immediate "positive catalyst" which could change current sentiment.

PayPal (PYPL.US) stock has traded sideways since the end of November between support at $179.50 and resistance at $195.32. Price failed to break above the upper limit of the consolidation zone yesterday, and continued range trading looks to be the base case scenario. However, should declines continue, investors should focus on the $168.00 handle which is marked with the 61.8% retracement of the upward move launched in March 2020. However, in case we finally see a break above the aforementioned $195.32 ,the upward move may accelerate towards 222.00 level marked with 38.2 Fibonacci retracement. Source: xStation5