June 30 Chart of the Day - PayChex
Paychex, Inc. (PAYX) reported fourth-quarter FY23 revenue growth of 7% year-over-year to $1.23 billion, beating the consensus of $1.22 billion.
The company's stock was down nearly 5% yesterday prior to the announcement which came after market close.
So does that mean the stock will pop right back up today because it surpassed earnings estimates?
Perhaps, but maybe not...
Looking at the higher time frame monthly chart using price action technical analysis one can see a developing "bull flag." Over time this can be good for price but since it presented itself on a monthly chart it could take many months to continue developing.
Recently, price has been making a series of lower lows and lower highs on the daily chart ie. downtrend. Near term support could be the bottom trend line of the bull flag near the $100 level.
If price were to pop from where it currently is, or from the $100 area, potential upside targets could be $118, $127, and $130 area up near the upper trend line and other potential technical structure.
If the $100 level doesn't hold the $90 level represents a potential "line in the sand" where bears and bulls have previously battled for control the this chart.
If the bears do manage to get price below the $90 area they could be targeting $82-$83 level or even below.
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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