Paychex Is Ready to Make an Upside Move
Shares for this HR management company are poised to surge higher, giving traders an intriguing opportunity.
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Paychex PAYX is an HR management company with "a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll." The stock price has moved sideways for a while but now looks ready to start an upside move.
Let's check out the charts and indicators.
In this daily bar chart of PAYX below, I can see a choppy sideways pattern since December, but the pattern changed in July and August. In July, PAYX made a higher low and again in August. Prices have stalled around $130 but beneath the surface the action has gotten more bullish. The On-Balance-Volume (OBV) line shows a rising trend the past year. The trading volume has increased slightly in the past two months and that could be a subtle "tell" that prices are geared up for a rally. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of PAYX below, I see a positive picture. Prices are trading above the rising 40-week moving average line. The weekly OBV line has been very strong the past twelve months. The MACD oscillator is turning upwards from the zero line for a fresh outright buy signal.
In this daily Point and Figure chart of PAYX below, I can see an upside breakout at $128 and a price target of $153.
In this weekly Point and Figure chart of PAYX below, I used a five-box reversal filter. Here, the software suggests we could see a rally to the $213 area.
Bottom line strategy: Traders could go long PAYX at current levels and on strength above $132. Risk to $124. $153 is my price target for now.
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