For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Marty Mucci, president and CEO of Paychex (PAYX) , the payroll and HR services company celebrating its 50th anniversary this month.
Over the past year, Paychex has helped countless companies apply for and secure over $65 billion in government assistance, loans and grants. They are currently helping businesses apply for employee retention tax credits. Mucci said they have already crossed the $3 billion mark with that government program.
In our review of PAYX on June 12 we wrote that "... the charts have improved from early April. Now I would recommend going long PAYX and risking to $96. The $125 area is our price target."
How do the charts look today?
In the daily bar chart of PAYX, below, we can see that the shares have continued higher. PAYX is trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line is pointed up and close to making a new high to confirm the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish too.
In the weekly Japanese candlestick chart of PAYX, below, we see a positive-looking chart. No top reversal patterns are seen. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line is at a new high to help confirm the price gains. The MACD oscillator is bullish too.
In this daily Point and Figure chart of PAYX, below, we can see a potential $125 price target.
In this weekly Point and Figure chart of PAYX, below, we used close-only price data with a five-box reversal filter. Here the chart reveals a $141 price target.
Bottom-line strategy: Continue to hold longs from previous recommendations. Raise sell stop protection to $102 from $96. Our price targets are now $125 and $141.