AUTOMATIC DATA PROCESSING (NASDAQ:ADP) showing some interesting technicals. Here's why.

Our stock screener has identified AUTOMATIC DATA PROCESSING (NASDAQ:ADP) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:ADP.

What is the technical picture of NASDAQ:ADP telling us.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall ADP gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ADP is only an average performer.

• The long and short term trends are both positive. This is looking good!
• ADP is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so ADP is lagging the market slightly.
• When comparing the yearly performance of all stocks, we notice that ADP is one of the better performing stocks in the market, outperforming 80% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• ADP is part of the Professional Services industry. There are 77 other stocks in this industry, ADP did better than 69% of them.
• In the last month ADP has a been trading in a tight range between 246.38 and 256.76.

Our latest full technical report of ADP contains the most current technical analsysis.

How does the Setup look for NASDAQ:ADP

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:ADP this score is currently 9:

ADP has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 253.45, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:ADP be traded?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.