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Wednesday, January 17, 2018 4:08:20 PM
PayChex Looks to Hit Payday with Momentum Breakout
By Arthur Hill | January 17, 2018
PayChex (PAYX), which has nothing to do with Chex cereal, ended its correction with a three-day surge and wedge breakout. First and foremost, the long-term trend is up as the stock broke out in early October and hit a 52-week high in December. The stock was quite extended after 30% advance and then took a breather with the wedge pullback.
A small wedge after a sharp advance is a correction and this makes it a bullish continuation pattern. Notice how the stock bounced off the rising 50-day SMA last week and continued with the wedge breakout this week. This means the uptrend is resuming and I would expect new highs in the coming days. The indicator window shows the Commodity Channel Index (CCI) dipping into oversold territory twice and then exceeding the intermittent high for a momentum breakout.
Plan Your Trade and Trade Your Plan.
- Arthur Hill, CMT
http://stockcharts.com/articles/dont_ignore_this_chart/2018/01/paychex-looks-to-hit-payday-with-momentum-breakout.html
• DiscoverGold
(Disclosure: I do not own PAYX shares)
By Arthur Hill | January 17, 2018
PayChex (PAYX), which has nothing to do with Chex cereal, ended its correction with a three-day surge and wedge breakout. First and foremost, the long-term trend is up as the stock broke out in early October and hit a 52-week high in December. The stock was quite extended after 30% advance and then took a breather with the wedge pullback.
A small wedge after a sharp advance is a correction and this makes it a bullish continuation pattern. Notice how the stock bounced off the rising 50-day SMA last week and continued with the wedge breakout this week. This means the uptrend is resuming and I would expect new highs in the coming days. The indicator window shows the Commodity Channel Index (CCI) dipping into oversold territory twice and then exceeding the intermittent high for a momentum breakout.
Plan Your Trade and Trade Your Plan.
- Arthur Hill, CMT
http://stockcharts.com/articles/dont_ignore_this_chart/2018/01/paychex-looks-to-hit-payday-with-momentum-breakout.html
• DiscoverGold
(Disclosure: I do not own PAYX shares)
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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