As of 10/11/2019
  Indus: 26,817 +319.92 +1.2%  
  Trans: 10,292 +224.65 +2.2%  
  Utils: 867 -5.54 -0.6%  
  Nasdaq: 8,057 +106.26 +1.3%  
  S&P 500: 2,970 +32.14 +1.1%  
YTD
 +15.0%  
 +12.2%  
 +21.6%  
 +21.4%  
 +18.5%  
  Targets    Overview: 09/30/2019  
  Up arrow27,600 or 25,600 by 10/15/2019
  Up arrow11,100 or 9,700 by 10/15/2019
  Up arrow900 or 850 by 10/15/2019
  Up arrow8,300 or 7,700 by 10/15/2019
  Down arrow2,825 or 3,050 by 10/15/2019
As of 10/11/2019
  Indus: 26,817 +319.92 +1.2%  
  Trans: 10,292 +224.65 +2.2%  
  Utils: 867 -5.54 -0.6%  
  Nasdaq: 8,057 +106.26 +1.3%  
  S&P 500: 2,970 +32.14 +1.1%  
YTD
 +15.0%  
 +12.2%  
 +21.6%  
 +21.4%  
 +18.5%  
  Targets    Overview: 09/30/2019  
  Up arrow27,600 or 25,600 by 10/15/2019
  Up arrow11,100 or 9,700 by 10/15/2019
  Up arrow900 or 850 by 10/15/2019
  Up arrow8,300 or 7,700 by 10/15/2019
  Down arrow2,825 or 3,050 by 10/15/2019

Bulkowski's Blog Archive: ADP

 

Blog Posting: February 29, 2008, Human Resources (ADP)

Automatic data processing stock

Let me say right off the bat that I own Hudson Highland Group (HHGP). I bought a small position on 2/15/08.

Pictured in the chart is Automatic Data Processing stock on the daily scale. I show this stock as a sample of an industry that I believe has turned the corner and is now moving up, or at least has the potential to move up. A confirmed Adam & Eve double bottom appears at points A and B. Confirmation occurred at D when price closed above the peak at C.

I see overhead resistance denoted by the green lines and more resistance above that in blue. Downside is a support zone setup by a Fibonacci retrace of the move from B to D. I expect price to reverse there if it moves up from here. The chart pattern is also a Big W setup by the steep slide beginning at E. This suggests that price will climb to E, stall there for a bit before moving higher. That would be a gift, given the overhead resistance I see before then (as described already).

No analysis would be complete without a look at how other stocks in the industry are doing, so here they are.

Administaff (ASF) shows an Adam & Eve double bottom but this looks to bust out downward. The other stocks in this industry are doing well and this one is not participating. Find out why or don't bother and avoid this one.

AMN Healthcare (AHS) also shows an Adam & Eve double bottom but this one has confirmed. Overhead resistance setup by a rectangle bottom in November and December are causing problems to a continued move up. Expect a Fibonacci retrace of the move up from the Eve low.

CDI Corp (CDI). This is a rounding bottom. Expect a retrace of the steep move up before heading higher. Overhead resistance setup by a symmetrical triangle will slow any move up.

Hewitt Associates (HEW).This is just moving up but expect a retrace since others in this industry will fall.

Hudson Highland Group (HHGP). I own this stock and expect to buy more. This is a tight head-and-shoulders bottom, confirmed. I expect price to move back into the knot of congestion just below where it is now, maybe touch the top of it. That would be a good buying opportunity. Above is resistance at 8-9 and then at 10 but clear sailing above that. As a long term holding, I can see this climb to 13 to 15 within a year. I have a stop at 6.60, below the knot I mentioned.

Kelly Services (KELYA). A V-shaped bottom with price now struggling to climb. Price might do a Fibonacci retrace of the move up from the January bottom.

Manpower (MAN). Another V-bottom, now struggling to climb.

MPS Group (MPS). A pipe bottom on the weekly scale followed by a nice move up. Will probably reverse and retrace just like the others.

On Assignment (ASGN). An extended V bottom and a nice one, too. Price might rise back to where the decline started in December (about 8). Just don't depend on it.

Robert Half (RHI). I thought of buying some of this as a complex head-and-shoulders bottom but decided against it. Price will retrace back to the flat shelf (at 26 in January) before moving back up.

Volt Info Sciences (VOL). The most recent pattern is a pipe bottom or maybe a head-and-shoulders top is forming.

As the above describes, I expect stocks in the industry to retrace some of the gains from here before moving higher. That is a guess, of course. But this is an example of how I do my analysis when choosing stocks to buy. This industry seems to be saying that it's bottomed and is poised to move higher. Since I own a small position in HHGP, one of the stocks in the group, be sure to factor that in.

Automatic Data Processing on the daily scale

Aftermath

I show some of the horizontal overhead resistance lines. Price moved up to the green line and formed a small knot of congestion, a flag pattern (circled). After that, price continued to move up to the blue resistance line. That is where resistance in the form of selling pressure overwhelmed buying demand and finally pushed price lower, at least for a few weeks.

-- Thomas Bulkowski

 

 

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