PAYX climbs to highest close since March 22nd
Paychex Inc. (PAYX) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
PAYX finished Monday at 62.24 gaining $0.75 (1.22%). Today's closing price of 62.24 marks the highest close since March 22nd. Closing above Friday's high at 62.18, the market confirms its breakout through the previous session's high having traded $0.30 above it intraday.
Daily Candlestick Chart (PAYX as at Apr 16, 2018):
Monday's trading range was $0.55 (0.89%), that's far below last trading month's daily average range of $1.49. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 61.11 and 62.49 which it has been in now for the last trading week.
Breaking through the key resistance level at 62.15 today, it is now likely to act as support going forward.
Although the stock is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory. Paychex Inc. managed to break above the 200-day moving average at 62.19 today for the first time since April 5th.
Buying could accelerate should prices move above the nearby swing high at 62.49 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 61.26 where further sell stops might get activated. With prices trading close to this year's low at 59.36, downside momentum could accelerate should the share break out to new lows for the year.