Bollinger Band Contraction for PAYX
The Bollinger Bands are contracting as Paychex (PAYX) trades within a narrow range this month. First, you can see the bands narrowing significantly this week (blue arrows). Second, the Bollinger Band Width indicator is trading at its lowest level in over four months. A volatility expansion often follows a volatility contraction.
Click this chart for details.
My daily and weekly indicators show an upside bias for PAYX, especially MACD re-setting after the price bounce off the 50 SMA, though the market appears to be weakening this week. Do you have any further thoughts since your post from last week?
Posted by: Michael Moore | October 27, 2009 at 03:06 PM