ADP closes higher for the 4th day in a row
Automatic Data Processing Inc. (ADP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ADP ended Wednesday at 137.71 gaining $0.74 (0.54%), notably outperforming the Nasdaq 100 (-1.67%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ADP as at Sep 16, 2020):
Wednesday's trading range has been $2.98 (2.17%), that's slightly below the last trading month's daily average range of $3.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ADP.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on August 25th, ADP lost -1.03% on the following trading day.
After spiking up to 140.14 during the day, the stock found resistance at the 20-day moving average at 138.37.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Automatic Data. Out of 434 times, ADP closed higher 59.45% 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 62.44% with an average market move of 0.84%.