ADP breaks back above 100-day moving average
Automatic Data Processing Inc. (ADP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ADP ended the month 1.64% higher at 148.89 after gaining $2.51 (1.71%) today, slightly underperforming the Nasdaq 100 (1.96%). Trading up to $1.35 lower after the open, Automatic Data managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ADP as at Jun 30, 2020):
Tuesday's trading range has been $3.45 (2.34%), that's slightly below the last trading month's daily average range of $4.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ADP. Prices continued to consolidate within a tight trading range between 143.84 and 149.59 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The market managed to close back above the 100-day moving average at 146.65 for the first time since June 23rd. When this moving average was crossed above the last time on June 16th, ADP actually lost -0.72% on the following trading day. Prices are trading close to the key technical resistance level at 149.78 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 152.15 where further buy stops could get activated. As prices are trading close to June's low at 142.44, downside momentum might speed up should the share mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Automatic Data. Out of 66 times, ADP closed higher 57.58% 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 57.58% with an average market move of 0.38%.