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
Tip: A Buy Setup with
multiple BTs, which has consistently bounced off
of the rising 20MA, shows a strong reliable
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.