PayPal Holdings, Inc. (PYPL​) shares have been on an impressive winning streak, rising nearly 70% with very little downside volatility over the past five months. Despite the significant gains, many analysts are confident that the stock has even more upside potential, and management continues to execute on its business plan. The company has not had an earnings miss since the third quarter of 2015 and has reported robust double-digit top-line growth over the past several years.

Evercore analysts recently increased their price target on PayPal to $81.00 per share from $68.00, saying that the transition from a product to a platform company creates significant competitive advantages and opportunities. At the same time, BITG analysts hiked their PayPal price target to $70.00 from $63.00, noting that the stock has plenty of room to grow thanks to the monetization of Venmo and the transition to an "asset-light credit model." (See also: PayPal a Buy Despite eBay Exit Risk: Analysts.)

Technical chart showing the performance of PayPal Holdings, Inc. (PYPL) stock

From a technical standpoint, the stock broke out on Thursday to reach new 52-week highs, but it faces some technical resistance at these levels. The relative strength index (RSI) appears overbought at 70.49, but the moving average convergence divergence (MACD) experienced a mild bullish crossover. Traders should maintain a bullish outlook on the stock over the intermediate term, but the shares could see some near-term consolidation.

Traders should watch for a breakout from key trendline and R1 resistance at around $65.00, which could spark a move toward R2 resistance at $67.94. If the stock fails to break out from these levels, it could move lower to retest trendline support at around $64.00 before a move higher. The lofty RSI reading could spell a near-term consolidation before the stock continues its bullish trend higher – a trend that appears supported by its fundamentals. (For more, see: Tesla, Alibaba and PayPal May Break From the Pack.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.

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