PAYC closes higher for the 3rd day in a row
Paycom Software Inc. (PAYC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PAYC finished the week 7.12% higher at 314.43 after gaining $11.14 (3.67%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 306.61, the market confirmed its breakout through the prior session high after trading up to $9.13 above it intraday.
Daily Candlestick Chart (PAYC as at Feb 14, 2020):
Friday's trading range has been $11.02 (3.62%), that's slightly above the last trading month's daily average range of $9.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PAYC.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 310.03 for the first time since February 5th. When this moving average was crossed above the last time on December 31, 2019, PAYC gained 2.66% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
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 20" stand out. Its common bullish interpretation has been confirmed for Paycom Software. Out of 76 times, PAYC closed higher 63.16% 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 72.37% with an average market move of 2.34%.