PAYX closes within previous day's range
Paychex Inc. (PAYX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PAYX ended Thursday at 65.66 gaining $5.58 (9.29%), significantly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PAYX as at Mar 26, 2020):
Thursday's trading range has been $6.05 (10.05%), that's slightly below the last trading month's daily average range of $6.09. 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 notably higher than usual for PAYX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 64.61 (now S1), which is likely to act as support going forward. After having been unable to move above 65.67 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 66.11. The last time this happened on March 13th, PAYX lost -19.48% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight 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 Paychex. Out of 314 times, PAYX closed higher 54.46% 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 62.74% with an average market move of 0.56%.