PAYX pushes through key technical resistance level
Paychex Inc. (PAYX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PAYX finished the week 1.4% higher at 89.21 after gaining $0.61 (0.69%) today, slightly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 89.21 marks the highest recorded closing price since January 23rd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 88.88, the share confirmed its breakout through the prior session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (PAYX as at Feb 14, 2020):
Friday's trading range has been $0.81 (0.92%), that's below the last trading month's daily average range of $1.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PAYX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Monday, PAYX actually lost -0.78% on the following trading day.
Buyers managed to take out the key technical resistance level at 89.06 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 89.96 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 89.96, upside momentum could accelerate should Paychex be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Paychex. Out of 75 times, PAYX closed higher 62.67% 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 66.67% with an average market move of 1.20%.