PAYC pushes through Wednesday's high
Paycom Software Inc. (PAYC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PAYC finished Thursday at 229.21 gaining $18.56 (8.81%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 218.95, Paycom Software confirmed its breakout through the prior session high after trading up to $11.43 above it intraday.
Daily Candlestick Chart (PAYC as at Mar 26, 2020):
Thursday's trading range has been $28.24 (13.83%), that's far above the last trading month's daily average range of $21.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PAYC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, PAYC gained 4.48% on the following trading day.
Buyers managed to take out the key technical resistance level at 216.85 (now S1), which is likely to act as support going forward.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Paycom Software. Out of 200 times, PAYC closed higher 59.50% 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 66.00% with an average market move of 2.81%.