Shares of Paychex ( PAYX) are weak in trading Thursday as investors react to mixed earnings and revenue numbers from the company this morning.
Let's review the charts of this provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services.
In the daily bar chart of PAYX, below, I can see a large sideways pattern on the chart but there is another way to look at it. One way of viewing the price action is repeated rally failures. Some buying interest has surfaced around $110 but that area is going to be tested and probably broken Thursday. The slope of the 50-day moving average line is cresting and the 200-day line is drifting to the downside.
The daily On-Balance-Volume (OBV) line shows a longer-term decline and tells me that sellers of PAYX have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) has moved below the zero line for an outright sell signal. 
In the weekly Japanese candlestick chart of PAYX, below, I can see a large topping pattern playing out in the $110 to $140 area since the middle of 2021. A weekly close below $110 will be a classic breakdown and likely precipitate further declines. Prices are below the declining 40-week moving average line.
The weekly OBV line is bearish and so is the MACD oscillator.
In this daily Point and Figure chart of PAYX, below, I can see that the software is projecting a downside price target in the $90 area.
In this weekly Point and Figure chart of PAYX, below, I can see a target in the $91 area.
Bottom-line strategy: The charts of PAYX are vulnerable to still further declines and traders should avoid the long side.
