Paychex Inc. (NASDAQ: PAYX) PAYX stock price surpassed the 20 and 50-day EMAs and is close to the 100-day EMA, indicating a sharp rise in momentum in the last trading session. Moreover, bulls have absorbed the selling pressure and have regained strength, showing a strong reversal in yesterday’s market session. Furthermore, the PAYX stock price has decisively sustained the gains near $110 and showed a comeback, indicating that buyers have not let back and initiated a long buildup activity, which trapped the short positions.
PAYX stock shows buying interest and a massive bullish engulfing candlestick, surpassing the previous five days’ highs above $115 with increased trading volume. Furthermore, the options chain suggests that, at the strike price of $115, the open interest of 797 hundred shares on the call side was trapped. In contrast, the addition of long positions was witnessed and 706 hundred shares on the put sides were noted and the PYAX share price surpassed the barrier. However, at the strike price of $120, the open interest of 984 hundred shares shows a strong resistance zone for the following sessions.
At press time, PAYX stock price was $117.40 with an intraday gain of 2.20%, showing neutrality on the charts. Moreover, the trading volume increased by 1.67% to 2.780 Million, and the market cap is $42.409 Billion. However, analysts have maintained a neutral rating with a yearly target price of $121.53, which suggests a weak growth outlook and underperformance for the following sessions.
Paychex, Inc. provides human capital management solutions for payroll, human resources, insurance and retirement for small and medium-sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services.
Will Paychex (PAYX Stock) Flip the Trend or Persist in Downtrend?
On the daily charts, PAYX stock price retested the support zone at $110, the bulls managed to hold and succeed in a smart recovery. Moreover, the PAYX stock price took support on the 50% Fib zone and is close to the mid-bollinger band.
The RSI curve is near neutrality and formed a bullish divergence, indicating a positive crossover on the charts.
The MACD showes a bullish crossover and green bars on the histogram, suggesting that bulls will likely initiate follow-on buying in the following sessions.
PAYX stock price has held on to the gains and is looking to surpass the 100-day EMA. The solid bullish engulfing candlestick highlights buying interest. However, buyers must stretch the gains and surpass the immediate hurdle of $120 to extend the recovery.
Support Levels: $110 and $100
Resistance Levels: $120 and $130
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