PayPal has recently given a clear sell signal, confirmed by price action at the end of last week. The key formation to note here is the pattern marked with the yellow rectangle, often referred to as an "initial death pattern." This bearish setup became more prominent as the red neckline was decisively broken, signaling a shift in sentiment from bullish to bearish.
Adding to the bearish scenario, the price also moved below the blue uptrend line. However, this particular uptrend line is somewhat debatable as the recent higher lows fail to align with a clean, continuous trend line. Despite this slight technical ambiguity, the overall sentiment remains negative, primarily due to the confirmed breakout of the red neckline.
Since the breakout, the price has consistently created lower lows and lower highs, a classic indication of a bearish trend. As long as the price remains below the red neckline, the signal to sell stays valid. A return above this level would negate the bearish sentiment and serve as an invitation to go long. However, given the current market dynamics, the chances of such a bullish reversal appear rather limited.