PYPL is completing an “FBF” pattern.
FBF = Failed Breakout Failure
So the stock cleared 40, broke out, sucked a bunch of people in, then the stock got slammed back to 37.
All those buyers have lost the high ground and we are in the middle of a “stop out” process.
Once those sellers get out of the way, that’s the time to look for long entries.
Ideally look for a final move sub 37.50 and for that move to fail. That will be a good entry point.
The other setup is to wait fro strength and the stock to get back above 39.50