There are signs that NASDAQ:PAYX may be ready to breakout.

Our stock screener has identified PAYCHEX INC (NASDAQ:PAYX) 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:PAYX.

Insights from Technical Analysis

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, PAYX scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, PAYX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, PAYX did better than 74% of all other stocks. On top of that, PAYX also shows a nice and consistent pattern of rising prices.
• PAYX is one of the better performing stocks in the Professional Services industry, it outperforms 73% of 83 stocks in the same industry.
• PAYX is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month PAYX has a been trading in a tight range between 136.97 and 144.17.

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

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:PAYX currently has a 9 as setup rating:

Besides having an excellent technical rating, PAYX also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 141.88. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 141.41, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:PAYX

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.