PAYX closes higher for the 3rd day in a row
Paychex Inc. (PAYX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PAYX finished Wednesday at 79.75 gaining $0.84 (1.06%), significantly outperforming the Nasdaq 100 (-1.67%). Today's close at 79.75 marks the highest recorded closing price since June 8th. Closing above Tuesday's high at 79.38, Paychex confirmed its breakout through the prior session high after trading up to $1.13 above it intraday.
Daily Candlestick Chart (PAYX as at Sep 16, 2020):
Wednesday's trading range has been $1.37 (1.73%), that's slightly below the last trading month's daily average range of $1.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PAYX.
Prices are trading close to the key technical resistance level at 80.64 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 76.15.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Paychex. Out of 450 times, PAYX closed higher 53.33% 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 61.78% with an average market move of 0.31%.