The Long Investor

$PYPL

Added 2023-03-09 15:16:09 +0000 UTC

I uploaded $PYPL recently and said I've added in a buy zone, after weighing up its fundamentals and determining that below $66, $PYPL is considered undervalued and would have a nice margin of safety by buying at this level. Buy Zones will always have this characteristic, it is the price we want the share price to go to in order to get maximum value.

The market can decide to buy before it ever reaches the buy zone, the market can decide that it believes the company deserves a higher value, sometimes this is euphoria or sometimes a company can be in the right industry at the right time, TSLA and NIO in late 2020 when their valuations went incredible high.

Our aim is to set buy zones that reflect a discount on what we determine to be the fair value of the company. This way, when we buy in the buy zone, we know that it is because the company is undervalued and not because it is the current 'next big stock to buy'

For $PYPL now, it is looking like breaking out of the trend line now, after finding support on the 0.65 Fib (that very popular fib level at the moment). There was a fakeout previously, so this will need to hold above the trendline to confirm that this is in Wave 3.