This Company Plans to Buy $10 Billion of Its Own Stock

The markets are trading around their 200-day moving averages, but the most powerful stocks are much stronger.

For example, this stock is about to break out over its 2018 high.

This may be because last year it plans to buy back over $10 billion of its own stock!

Should you buy this stock too

PayPal (PYPL) is probably a name that you recognize, but did you know that when the QQQ collapsed to new year-to-date lows in December, PYPL hardly even sold off?

This could be because big money investors know that PYPL is buying its own stock back hand over fist, and last July it boosted its share buyback program by $10 billion which boosted its cash allocation for buybacks to over $12 billion.

Its strength could also be because it owns one of the hottest mobile payment platforms, Venmo.

Mobile payments is a big trend. According to eMarketer, the global mobile e-commerce market is expected to grow from $1.4 billion in 2017 to $3.6 trillion in 2021.

This all sounds good, but I wouldn’t be focused on it if it didn’t have a very bullish looking chart.

The trade setup is simple. As you can see by the chart below $94 has been important resistance as the all-time high several times in the last 6 months.

Now that it has consolidated for several days above $94, a breakout to new highs (over $96) is the trade entry, and once that happens it should not trade back  under $92 so a stop loss should be place under that level.

Trade smart,

Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation