Paysafe Stock Looks Ready For A Reversal After Redditors Grab Ahold Of It

Paysafe Ltd. PSFE shares are rallying higher Friday morning after retail traders aim to push the stock higher.

Paysafe is a stock traded by Reddit’s WallStreetBets community and is a top 20 ticker on the page. The stock was also trending on social media sites such as StockTwits Friday.

Paysafe was up 9.62% at $12.19 at the last check Friday.

Paysafe Daily Chart Analysis

• Shares caught the eyes of Redditors who have been trying to push the stock higher.
• The stock gapped above the 50-day moving average (green) Friday, indicating the stock is likely turning bullish. The 50-day moving average may hold as an area of support.
• The Relative Strength Index (RSI) made a large jump Friday, the stock was trading below 50 on the RSI before Friday meaning there were more sellers than buyers. Friday the RSI moved higher up to 60 meaning there are now more buyers in the stock.

Key Paysafe Levels To Watch

• Paysafe has traded in a downtrend throughout the past few months and was able to gap up Friday past the resistance of the channel.
• The gap out of the channel could signal the trend is changing and the downtrend the stock has been in could be ending.
• The break of resistance paired with the channel break is a good sign to see a reversal.
• Traders should look to see if the stock can hold above the $12 level as this was near the low the day of the gap up.

What’s Next For Paysafe?

Bullish technical traders would like to see the stock hold above Friday’s low and begin to build higher lows. If the stock begins to form higher lows it may be ready to see a trend change.

Bearish technical traders would like to see the stock break below the resistance it gapped above Friday. If the stock can cross back below this downward channel resistance it may be ready to continue on the downtrend it had been in.