ADP Challenges ResistanceAutomatic Data Processing has moved sideways since the autumn, and now some traders may think it’s ready to move.
The first pattern on today’s chart is the series of lower highs since early March. The payrolls-processing company closed above that falling trendline on Friday, which may suggest it’s breaking resistance.
Next, prices tested and held their rising 200-day simple moving average (SMA). They’ve also fought back above the 50-day SMA. Those signals may be consistent with long- and intermediate-term uptrends.
Third, the 8-day exponential moving average (EMA) just crossed above the 21-day EMA. MACD also turned positive. Those signals may be consistent with short-term bullishness.
Finally, ADP’s results and guidance beat estimates on April 30. The resulting bullish outside candle could also suggest buyers are taking charge.
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