Technical Pulse: Automatic Data Processing Inc. October 22, 2021 128

Automatic Data Processing Inc (US: ADP) Primary uptrend remain intact despite prices briefly broke below the intermediate downtrend. Technical price action indicate a strong bullish upside going forward:

 

  1. Elliott wave analysis indicate that the upside is far from over as the ongoing wave (3) of the intermediate phase has yet to achieve its 161.8% Fibonacci expansion target of wave (1)-(2).
  2. Rounding bottom formation is indicative of a bullish breakout above of the major resistance zone at US$212.11-US$216.33 after a piercing line candle was found consolidating within the resistance zone.
  3. Ichimoku shows “Three bullish crossover” signal and it is a strong confirmation of the uptrend to come.

 

 

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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