• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Financial Services

Paychex Is Poised for a Fresh Upside Breakout

$65 is our initial price target and use a reasonable sell stop if we are wrong.
By BRUCE KAMICH
Jun 03, 2016 | 08:22 AM EDT
Stocks quotes in this article: PAYX

Paychex (PAYX) has had a great run from its early 2009 low, but it is not over. After a broad sideways consolidation since October, PAYX is poised to make new highs again. 

Take a step back when you look at this daily chart of PAYX, above. Prices moved sideways in a $55 to $46 trading range. In January and February, there was a deep correction, and then in April and May it was a shallow correction. Shallow corrections in an uptrend are a sign of more aggressive buying interest in a stock or index.

The On-Balance-Volume (OBV) line rose in the October to December period, and again since February. Prices are above the flat 50-day moving average line and the rising 200-day line. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration -- rising and above the zero line.  

This weekly chart of PAYX, above, is very bullish. Notice how the $45 level has acted as resistance in late 2013, and then as support when it broke above that level. Prices have also stalled out around $55, which gives us a clear breakout point with a close above $56. Prices are above the rising 40-week moving average. The OBV line is positive and the MACD oscillator just crossed for a new buy signal. 

Strategy -- go long PAYX on a close above $56; $65 is our initial price target, and use a reasonable sell stop if we are wrong.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Investing | U.S. Equity | Financial Services

More from Financial Services

3M and Mastercard Continue to Trade Sideways

Bruce Kamich
Jan 20, 2021 10:55 AM EST

Both stocks may eventually do better when investors sense that the economy is indeed going to do better.

Here's Why You Should Keep an Eye on Upstart Holdings

Bruce Kamich
Jan 19, 2021 11:48 AM EST

Keep this newly public company on your shopping list for the first quarter of 2021.

One to Watch: A Strategy for PagSeguro Digital

Timothy Collins
Jan 14, 2021 2:55 PM EST

Here's where I'd look to be a buyer of the stock. On the options side, the market is a little on the thin side, but it is playable.

Why I'm Souring on Lemonade

Bruce Kamich
Jan 13, 2021 2:01 PM EST

LMND shares have tripled in less than two months

Let's Look to TLT to Chart the Future of Interest Rates

Bruce Kamich
Jan 12, 2021 11:56 AM EST

This is the direction the yield on the 10-year treasury looks to be headed.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • 07:54 AM EST GARY BERMAN

    Friday Morning Fibocall for 1/22/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login