Paycom Software Inc (NYSE: PAYC)

Paycom Software, Inc. offers cloud-based human capital management (HCM) software solutions delivered as Software-as-a-Service in the United States. It provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. Its HCM solution offers a suite of applications in the areas of talent acquisition including applicant tracking, candidate tracker, background checks, on-boarding, E-Verify, and tax credit service applications; time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, and labor management reports/push reporting, payroll and tax management, Paycom Pay, expense management, and garnishment management applications.
Take a look at the 1-year chart of Paycom (NYSE: PAYC) below with my added notations:

PAYC has formed a relatively clear up-channel chart pattern over the last 8 months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that PAYC has several points of channel resistance (red) and support (green).

The Tale of the Tape: PAYC has formed an up-channel. A long trade could be entered on a pullback down to the channel support, which currently sits near $33. Short opportunities would be on rallies up to channel resistance or on a break of channel support.
Please share this article