After the rumors of a takeover cooled down, the stock price of PayPal entered a short-term consolidation phase. Reports mention that Advent and Stripe have abandoned their attempt to acquire PayPal for approximately $50 billion, which removes one of the event-driven factors that previously supported the stock price.

PayPal closed at $61.47 today, below the daily pivot point of $61.72. Nevertheless, the daily chart structure remains bullish, with the stock price still above the 20-day, 50-day, and 200-day moving averages, indicating that the upward trend formed over the past few months has not been disrupted.

The daily chart is still above the main moving average.

Looking at a longer period, the stock price is still above the main moving averages.

• The 20-day moving average is approximately $59.85.
• The 50-day moving average is approximately $55.46.
• The 200-day moving average is approximately $53.58.

The report suggests that this structure of gradually rising moving averages typically indicates that the medium-term trend is still upward. The middle band of the Bollinger Bands is around $60.16, and the upper band is around $63.25. After the stock price approached the upper band earlier, it fell back to the middle region, which is more likely a consolidation after an increase, rather than a reversal in trend.

However, there are already signs of a slowdown in the daily momentum. On the 14th, RSI was around 65.54, still in a relatively strong range, but the value of MACD turned negative, indicating that the upward trend has begun to cool down.

Fatigue at the hourly level

Compared to the daily chart, the performance at the hourly and 15-minute levels is more cautious. Reports indicate that the stock price has fallen below the 20-day and 50-day moving averages on these shorter time frames, indicating a weakening of short-term buying momentum.

On the 15-minute chart, RSI has fallen back to around 40, while MACD is close to parity, indicating that the short-term market direction is not clear. The current price is fluctuating within a narrow range between the support level and the intraday pivot point, which also suggests that traders are adopting a wait-and-see attitude.

M&A themes take a temporary backseat

It was reported that after Advent and Stripe abandoned their acquisition plans, PayPal lost a short-term positive factor that was independent of fundamental conditions. Previously, if the market bet on a potential merger and acquisition, related expectations would often drive up valuations and trading enthusiasm; once the transaction no longer progressed, this premium could be reversed.

The article also mentions that the statements related to the Federal Reserve's Jackson Hole meeting have brought additional uncertainty to the market. Against the backdrop of mergers and acquisitions themes fading from the spotlight and macroeconomic news still needing to be digested, the direction of fluctuations in the coming trading days may determine whether this period of consolidation is just a pause in an upward trend or the beginning of a further decline.