Paychex is ready to pay off!!

After Thursday’s big bounce it seems to get harder to find a chart that gives us a good entry point. Most stocks moved higher on Thursday as the market was up big on the day. One chart that I like is Paychex (PAYX), because it is setting up to break out of a three week trading channel. The high of this channel is $29.11, which is resistance for this upside move. If PAYX can break through this level, we should see a breakout move that is driven by trading volume. The biggest problem with this stock is the lack of strong follow through. You can see on the chart there are a lot of “wicks” on candles, which tells us the stock does not hold up well after making a move. There might only be one chance for this move, so watch PAYX closely and be ready for this breakout move.

We have a good selection of picks for Friday, and you can see these for free on our daily watch list at www.todaytrader.com You do not have sign up, just click on the watch list word on the left side of the page. No registration is required.

This is not a solicitation or recommendation to buy or sell. These are stocks we are watching for traders. We may or may not trade these picks and do not make any guarantee of success. Commentary of these stocks is for educational purposes only

Mickey Welcher is President of Spectral Asset Management LLC and works with Today Trader. He has extensive trading experience and money management for clients. If you have any questions, please contact him at micke@todaytrader.com