We last reported on Paycom Software (PAYC) in the October 5th, 2020 edition of the DSR. At that time PAYC had returned to the Green Zone for the first time since July after moving up 200 places and rising from the red zone to the Green Favored Zone.
After a brief dip into the red unfavored zone, PAYC has caught fire again this month after a positive earnings release after market hours on August 3rd sending the shares rocketing higher over the past 4 trading days and into the Green Favored Zone of the SIA S&P 500 Index Report. Yesterday, the shares made a new all time high closing price of $468.56 and tested the intraday all time high of $471.08 for the first time.
Next potential resistance appears near the $500 round number, and after that $514 based on a weekly 100% Fib extension level. Initial support appears in the $432 area where the market opened after the price gapped up on earnings and below that around the $400 round number where price traded just before earnings.
Paycom Software (PAYC) shares spent the last 2 months slowly recovering from a 24% decline between May and June of this year from a sideways consolidation during the first 4 months of the year. In the last few days, they have come under renewed accumulation, forming an unconfirmed Bullish Double Top pattern.
Currently the shares are sitting at resistance in the $472 to $481 area at the previous peak. A breakout to a new high would signal the start of a new advance with next potential resistance test near the $500 round number and above that at $553 based on prior measured moves. Initial support appears near $436 based on a 3-box reversal.
Up 113 spots on the week, 150 on the month and 7 over the last trading day within the SIA S&P500 Index Report and with a strong SMAX score of 9, PAYC is exhibiting near-term strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.