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ADP Trade Setup & Entry

ADP (Automatic Data Processing Inc.) will be added as an Active Short Trade idea with a max. suggested stop above 89.65. T2 (79.22) is the current final target although additional targets might be added. Ideal entry level is anywhere as high as 88.00 and a low as 86.00 (currently trading around 87.40).


On the daily & 2-day period charts above, ADP has just rolled off the formidable 90.50ish resistance level, marking the third failure at that level in just over a year. The negative divergences in place on the MACD & RSI help to confirm the bearish nature of the potential triple top reversal pattern. On the 2-day period chart below, you can also see that the second failure at the highs was a backtest of the 2012-2015 primary uptrend line on ADP while the weekly chart only helps to affirm the longer-term bearish case as ADP is trading near the top of a very large bearish rising wedge pattern, complete with strong bearish divergences in place on both the PPO & RSI.

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May 5, 2016 12:12pm|Categories: Completed Trades - Short|Tags: |11 Comments

11 Comments

  1. joefriday May 5, 2016 12:44 pm at 12:44 pm

    Nice set up Randy… here’s my view on ADP via a Daily chart.. http://s32.postimg.org/gvbl0joud/ADP.png

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    • rsotc May 5, 2016 12:46 pm at 12:46 pm

      JF- I like how that 61.8% Fib lines up with gap support (your target). Thx for sharing.

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      • joefriday May 5, 2016 12:56 pm at 12:56 pm

        Thanks… $82 is just my minimum target..could certainly extend to your $79.22 target..

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  2. Shambo May 5, 2016 3:24 pm at 3:24 pm

    nice start to this ADP trade.

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  3. joefriday May 13, 2016 2:15 pm at 2:15 pm

    Still in ADP puts… in fact added some…but ADP needs to break below that $86 level….5x-6x attempts have held so far since last week..
    .

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  4. joefriday May 13, 2016 2:45 pm at 2:45 pm

    Well no sooner than I posted the above..and BAM $86 broke..! LOL Sweet!!

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  5. Gaucho June 23, 2016 3:34 pm at 3:34 pm

    Hi Randy, @rstoc today ADP reached 89.79 over the stop 89.65.

    My question is Shoud the stop be executed when
    a) the “close of the day” reaches the stop
    b) the “close of an hour” reaches the stop
    c) or just at the moment reaches the stop?

    Thanks

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    • rsotc June 23, 2016 4:31 pm at 4:31 pm

      Gaucho- Unless otherwise specified (such as a 60-minute or daily close above), the suggested stop for a trade, such as with ADP, is on any move above the suggested stop level. ADP exceeded the suggested stop today & will be updated over the weekend with any other trade ideas that have also recently exceeded their suggested stops, hit a price target or are in need of an update if there have been any significant developments in the charts.

      On a related note, for those trades that list a suggested stop on a daily close below (for longs) or above (for shorts) a certain level, those trades are best closed out within the last minute or so of trading if it appears almost certain that the stock will close beyond the suggested stop level. If it is very close, I will usually hold off & wait to see how the stock trades the following day.

      For hourly (60-minute) candlestick closing stop criteria, the position should be closed immediately after the first 60-minute candlestick is finalized with a closing value above the suggested stop.

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      • Gaucho June 23, 2016 5:06 pm at 5:06 pm

        Thanks!!

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  6. Gaucho June 30, 2016 10:36 am at 10:36 am

    Hi Randy, @rtoc do you have any update of ADP?.
    It is going up to have the fourth top or a break thru
    Regads

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    • rsotc July 5, 2016 10:41 am at 10:41 am

      @gaucho I just saw this question that you posted last week on the ADP trade. The last update on that trade was published on June 24th after ADP was stopped out:http://rightsideofthechart.com/short-trades-updated-4/ As of today, ADP is still trading above those previous reaction highs so until/unless that breakout fails, the outlook is more bullish than bearish.

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