Stocks making new 52-week highs are clearly in uptrends and leading. Even though Paypal is just shy of a 52-week high, the bigger uptrend and wedge point to new highs in the near future.
First and foremost, Paypal is in a long-term uptrend because the 50-day EMA is above the 200-day EMA and the close is above the rising 200-day EMA.
After hitting a new high in late January, the stock corrected with a large falling wedge into mid May. This correction was needed to work off the overbought conditions created in January. The falling wedge is a typical pattern for a correction and the breakout near 80 signaled an end to this correction.
This breakout argues for a continuation of the bigger uptrend and I would expect new highs in the coming weeks and months. The breakout zone around 80 turns first support to watch on a throwback (test of the breakout). A move into this zone could present an opportunity.
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Senior Technical Analyst, StockCharts.com