July 28 Chart of the Day - ADP
ADP (ADP), a leading global technology company providing human capital management solutions, announced their 4Q earnings earlier this week. And while the stock has been a steady climber since dipping down to the $201 area back in April, price seemingly has taken a breather the past two days since surging above a major support/resistance level at $248.96.
In what could be a classic "break and retest" of a major level, price may have a big decision to make if it were to make it up to the $260 area in the face of support/resistance, trend, and Fibonacci. All could pose a formidable detour for price or all could simply be ignored by price.
That's the beauty of price action technical analysis. Determining price levels of interest in both directions so that traders can benefit by two sided price action.
If the break and retest turns out to be a failed breakout and price retreats even further then next levels down could be $235-240 zone as determined by using advanced high to high Fibonacci techniques as taught in our Advanced Fibonacci course.
Alternatively, if price were to blow right through the $260 area then the bulls may have their sights set on current or even new all time highs at $275+.
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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