ADP snaps to lowest close since June 4th
Automatic Data Processing Inc. (ADP) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, ADP ended the week -7.8% lower at 159.74 after losing $0.67 (-0.42%) today, slightly underperforming the Nasdaq 100 (-0.31%). Today's close at 159.74 marks the lowest recorded closing price since June 4th. Closing below Thursday's low at 160.15, the share confirmed its breakout through the previous session low after trading up to $1.19 below it intraday.
Daily Candlestick Chart (ADP as at Sep 13, 2019):
Friday's trading range has been $2.64 (1.64%), that's slightly below the last trading month's daily average range of $2.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADP.
Prices are trading close to the key technical support level at 158.94 (S1). Prices are trading close to the key technical resistance level at 162.10 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 167.26.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test August's nearby low at 158.73.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Automatic Data. Out of 7 times, ADP closed higher 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 2.03%.