False BreakThe outbreak on Wednesday sems to have been a false one.
After the inside small candle yesterday this is confirmed by a Hanging Man today an a falling ADX.
4ADP trade ideas
Pivoting Automatic Data Processing. ADPStrong bearish candle starts the picture painting. MIDAS cross follows, along with divergent RSX now out of OBOS territory. Would you look at that long combo on BB%PCT, now flipping to bearish. Interestingly, VZO and Ehlers Stoch RSI have been chronically divergent along the fifth wave, which is often seen. Fifth wave has often been attributed to traders big and small pushing the price beyond sustainable levels, which gets high lighted by divergences being throw off all over the place.
ADP - Bullish Continuation Toward 315.50NASDAQ:ADP is trading above its ascending trendline, showcasing strong bullish momentum. The price action maintains the pattern of higher highs and higher lows, which supports the case for trend continuation. I expect that if the stock continues this upward movement, it could reach the 315.50 level. The bullish bias remains intact as long as the trendline support is respected.
Feel free to share your thoughts or any additional insights in the comments!
Automatic Data Processing, Inc. (ADP) | Chart & Forecast SummaryKey Indicators on Trade Set Up in General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Active Sessions on Relevant Range & Elemented Probabilities;
* Asian(Ranging) - London(Upwards) - NYC(Downwards)
* Weekend Crypto Session
# Trend | Time Frame Conductive | Weekly Time Frame
- General Trend
- Measurement on Session
* Support & Resistance
* Trade Area | Focus & Motion Ahead
# Position & Risk Reward | Daily Time Frame
- Measurement on Session
* Retracement | 0.5 & 0.618
* Extension | 0.786 & 1
Conclusion | Trade Plan Execution & Risk Management on Demand;
Overall Consensus | Buy
The Price is currently above the middle bandPrice Action & Trend :
A pullback occurred recently, but the price bounced off a lower level (around $268) and seems to be attempting a continuation of the uptrend.
Bollinger Bands :
The price recently touched the upper Bollinger Band and pulled back slightly, but it's currently moving back toward the upper band, suggesting potential bullish momentum.
Volume :
Volume has increased slightly on the upward move today. This is a positive sign, as it indicates that the bullish move is supported by buyers.
Key Support & Resistance Levels :
Support: The most immediate support level is around $268, which is also near the middle Bollinger Band and the previous low.
Resistance: The next significant resistance is around $278, the most recent swing high. If this level is broken, the stock may continue to rally.
Candlestick Pattern :
Today's candlestick is a large bullish candle, engulfing the previous candle, which is typically a bullish engulfing pattern. This is a positive sign, as it indicates buyer strength.
Conclusion :
The overall sentiment for ADP looks bullish, as it is in an uptrend, trading above key moving averages, and supported by rising volume.
If the price breaks the $278 resistance, the uptrend may continue further.
A break below $268 could signal a deeper pullback, potentially down to the 50-day moving average around $264.
This is what Winner Stocks looks likeGreat stock for good returns. ADP's moat stems from its dominant position in the payroll and human capital management industry, which is bolstered by its extensive scale and network effects. The company's large customer base and integrated services create a significant barrier to entry for competitors, enhancing its value proposition. ADP's long-standing reputation for reliability and accuracy has built substantial customer loyalty, making it difficult for new entrants to challenge its market share. Additionally, ADP’s comprehensive suite of services, including payroll, benefits administration, and tax compliance, increases switching costs for clients. The company's ongoing investment in technology and data security helps it maintain a competitive edge, driving sustained financial performance and contributing to its high stock valuation.
ADP : Key observations and potential trading opportunities I seeThe key observations and potential trading opportunities I see
1. Price Action:
The chart shows a ranging market with clear support and resistance levels. The price has been oscillating between approximately $240.39 (support) and $250.18 (resistance) over the past few months.
2. Recent Movement:
There's been a recent upward movement from the support level, with the price currently near the resistance level of $248.78.
3. Potential Setup:
A short (sell) opportunity may be emerging. The price has approached the upper resistance level and appears to be showing signs of rejection.
4. Entry Point:
The "Sell Point" marked on the chart at around $248.78 seems to be a logical entry for a short position.
5. Target:
If initiating a short trade, the initial target could be the lower support level at $241.28, with an ultimate target at the stronger support of $240.39.
6. Stop Loss:
A stop loss could be placed above the major resistance at $250.18.
7. Risk/Reward:
Assuming an entry at $248.78, stop at $250.18, and target at $241.28:
Risk = $1.40 per share
Potential Reward = $7.50 per share
Risk/Reward Ratio = approximately 1:5.35, which is favorable
8. Volume:
Without clear volume indicators, it's difficult to confirm the strength of the recent move. This is a limitation in the analysis.
9. Trend:
The overall trend appears neutral (ranging), but there's a short-term uptrend that might be losing steam at the resistance level.
10. Additional Considerations:
- The ranging nature of this market suggests a strategy of "selling the rips and buying the dips" could be effective.
- Be cautious of potential breakouts above $250.18, which could invalidate the short setup.
- The "Take Profits" level marked on the chart aligns with historical support, reinforcing its significance.
Conclusion:
Based on this analysis, a short trade setup with a favorable risk-reward ratio is presenting itself. However, it's crucial to wait for confirmation of rejection at the resistance level before entering. Always use proper position sizing and be prepared to exit if the price breaks above the key resistance level.
Remember, this analysis is based solely on the technical aspects visible in the provided chart. In real trading scenarios, it's important to consider fundamental factors, broader market conditions, and use additional technical indicators for confirmation.
ADP Automatic Data Processing Options Ahead of EarningsIf you haven`t sold ADP here:
Then analyzing the options chain and the chart patterns of ADP Automatic Data Processing prior to the earnings report this week,
I would consider purchasing the 240usd strike price in the money Calls with
an expiration date of 2023-11-17,
for a premium of approximately $7.50.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
AUTOMATIC PROCESSING DATA Stock Chart 070223Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 216/61.80%
Chart time frame : B
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress : A
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) Hit the bottom
D) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provide these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
ADP might push with force through 200MAADP has accumulated a lot of pressure below the 200 ma and the demand started to rise. A push through 200 MA must be done with force to bend it upwards.
Fundamentally, ADP is one of the companies that manage to beat EPS expectations every quarter, the management increased its FY2023 guidance again.
ADP UnpredictableAlthough ADP has an average growth of sales every year of around 5.52% but it still would appear as if the stock is being overbought. The P/E ratio is given a relative sector grade of D- for having a difference to other companies in the sector by over a 70% margin. RSI index indicates that the stock is nearing the overbought level bouncing around levels above 60. With the stock also resting comfortably almost $10 above resistance levels, respectively. There have been larger amounts of volume trading the stock throughout the past couple months which has resulted in a rise in price although, USB has a price target of $250 for the stock hopefully resulting in positive investor sentiment.
ADP Earningstrade Summary ADP Earningstrade Summary:
Entry: 2023-JAN-24
Exit: 2023-MAY-17
Days: 113
Risk: 20,000
Premiums: 410.30
ann ROI: 410.30/20,000*365/113 = 6,6%
I had to roll this trade several times.
I closed the last put option a month before expiration because the option lost 70% of its value in less than half the time.
The annualized ROI is rather low. Nevertheless, despite falling prices, I was able to book a profit in the end.
ADP Automatic Data Processing Options Ahead of EarningsLooking at the ADP Automatic Data Processing options chain ahead of earnings , I would buy the $240 strike price Puts with
2023-2-17 expiration date for about
$6.55premium.
If the options turn out to be profitable Before the earnings release, I would sell at least 50%.
Looking forward to read your opinion about it.
