PAYX breaks back above 20-day moving average
Paychex Inc. (PAYX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PAYX finished the month 4.8% higher at 75.75 after gaining $2.03 (2.75%) today, outperforming the Nasdaq 100 (1.96%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 73.91, Paychex confirmed its breakout through the previous session high after trading up to $2.34 above it intraday.
Daily Candlestick Chart (PAYX as at Jun 30, 2020):
Tuesday's trading range has been $2.95 (4.01%), that's above the last trading month's daily average range of $2.32. 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 lower than usual for PAYX.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 75.10 for the first time since June 18th. When this moving average was crossed above the last time on May 20th, PAYX actually lost -0.60% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine 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 315 times, PAYX closed higher 54.92% 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 63.49% with an average market move of 0.73%.