The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

It all Started with a Big Bang!

by admin September 3, 2024
September 3, 2024
It all Started with a Big Bang!

Extended trends often start with big bangs and major breakouts. Chartists can identify “big bang” moves by showing price change in ATR terms. We can use the price charts to identify big breakouts. Today’s example will show Paypal (PYPL), which is part the FinTech ETF (FINX). The ChartTrader weekly report featured FINX because it broke its July high and Paypal because it is part of this strong group. Note that we are offering a free look at this week’s ChartTrader report and video (here)

Let’s first look at the breakout on the price chart. PYPL was trading above 300 in 2021 and then fell to around 50 in October 2024. The stock rebounded with the market from November to January and then traded flat the last seven months. A large range formed with the stock hitting resistance at 68 at least four times since January. The stock broke through with a big move in August and this is very bullish.

Not only did PYPL break a major resistance level, but it did so with a big bang. The indicator window shows Normalized ROC, which measures the price move in ATR terms. Average True Range (ATR) is a volatility indicator developed by Welles Wilder. Normalized ROC (20,250) shows the 20 day price change divided by ATR(250). This indicator exceeded 5 in late August, which means the price move was more than 5 ATR values. A big bang indeed. This is the strongest 20-day move since 2021. Normalized ROC is part of the TIP Indicator Edge plugin for StockCharts ACP.

Even though the big bang move and a breakout are long-term bullish, note that Paypal is short-term overbought after this sharp advance. This means we could see some backing and filling as the stock digest the advance. The green shading marks an area to watch for possible support should we see a pullback.

Note that we are offering a free look at this week’s ChartTrader report and video (here)

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Biden claims Netanyahu not doing enough to secure deal with terrorists
next post
Where are low-cost airlines cutting back now? New planes.

Related Posts

Market Pops, Then Drops on Fed Day

May 2, 2024

The Real Drivers of This Market: AI, Semis...

August 4, 2025

The Best Leading Indicator for Stocks

March 23, 2024

Will the Stock Market’s Santa Rally Bring Holiday...

December 21, 2024

S&P 500 Breaking Out Again: What This Means...

August 4, 2025

Why Stock Outperformance Might be ENDING!

September 11, 2024

Stocks Plunge with Key Earnings on Tap

May 1, 2024

The Real Drivers of This Market: AI, Semis...

August 3, 2025

Decisive Long-Term Breakout for Gold

March 16, 2024

S&P 500 Breaking Out Again: What This Means...

August 3, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      August 31, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      August 31, 2025
    • Epstein estate to hand over ‘birthday book’ to lawmakers, House Dem says

      August 31, 2025
    • Dyan Cannon denied White House entry after lying about her age on passport documents

      August 31, 2025
    • Israel eliminates Houthi prime minister in Yemen airstrike targeting senior government officials

      August 31, 2025
    • Sen. Bernie Sanders calls on RFK Jr. to resign following departure of CDC officials

      August 31, 2025

    Categories

    • Business (1,370)
    • Politics (4,370)
    • Stocks (1,619)
    • Uncategorized (45)
    • World News (1,363)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved