Paychex Bullish Signs

New York, August 13th (TradersHuddle.com) - Shares of Paychex, Inc. (NASDAQ:PAYX) ended the trading session higher by $0.24 or 0.72% from its previous close. Paychex's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Paychex, Inc. (NASDAQ:PAYX) provides comprehensive payroll and integrated human resource and employee benefits outsourcing solutions for small- to medium-sized businesses in the United States.

Paychex's recent stock range was formed by a trough where calculated support was defined at $30.54 and by a peak that established the resistance level at $33.40. This range could be used by traders managing their positions.

Traders wanting to establish a position in Paychex or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:

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