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Bottoming Tails on the Rising 20MA
Buy Setup and Bottoming Tails (BT) on the rising 20MA and trend line support. PAYX was actually a Buy Setup two days in a row. Second day it closed with a doji bar, and held first day's low by a penny, showing demand underneath. It is interesting how the stock has bounced off of its rising 20MA so many times after breaking to new highs in March. The steady advance of the 20MA is also why it is also acting as trend line support (see green line).
chart courtesy of Mastertrader.com
A Buy Setup with multiple BTs, which has consistently bounced off of the rising 20MA, shows a strong reliable uptrend.
Buy over previous day's high, with a protective stop under previous day's low.
A move to the $32.50 area.
PAYX failed to trigger. However, it actually turned about to be a "Failed Pattern" and good Short Play.
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