How To Trade Automatic Data Processing ADP

June 23, 2022, 14:30 pm ET, BY Robert S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This report provides trading strategies for Automatic Data Processing (NYSE: ADP) while incorporating risk controls.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for ADP change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if ADP is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for ADP too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for ADP

• Buy ADP slightly over 206.83 target 224.78 stop loss @ 206.23 Details

The technical summary data tells us to buy ADP near 206.83 with an upside target of 224.78. This data also tells us to set a stop loss @ 206.23 to protect against excessive loss in case the stock begins to move against the trade. 206.83 is the first level of support below 209.21 , and by rule, any test of support is a buy signal. In this case, support 206.83 would be being tested, so a buy signal would exist.

• Short ADP under 224.78, target 206.83, stop loss @ 225.43 Details

The technical summary data is suggesting a short of ADP as it gets near 224.78 with a downside target of 206.83. We should have a stop loss in place at 225.43though. 224.78 is the first level of resistance above 209.21, and by rule, any test of resistance is a short signal. In this case, if resistance 224.78 is being tested, so a short signal would exist.

Swing Trading Plans for ADP

• Buy ADP slightly over 224.78, target 243.08, Stop Loss @ 224.13 Details

If 224.78 begins to break higher, the technical summary data tells us to buy ADP just slightly over 224.78, with an upside target of 243.08. The data also tells us to set a stop loss @ 224.13 in case the stock turns against the trade. 224.78 is the first level of resistance above 209.21, and by rule, any break above resistance is a buy signal. In this case, 224.78, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ADP near 224.78, target 206.83, Stop Loss @ 225.43. Details

The technical summary data is suggesting a short of ADP if it tests 224.78 with a downside target of 206.83. We should have a stop loss in place at 225.43 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 224.78, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for ADP

• Buy ADP slightly over 209.64, target 224.78, Stop Loss @ 209.15 Details

If 209.64 begins to break higher, the technical summary data tells us to buy ADP just slightly over 209.64, with an upside target of 224.78. The data also tells us to set a stop loss @ 209.15 in case the stock turns against the trade. 209.64 is the first level of resistance above 209.21, and by rule, any break above resistance is a buy signal. In this case, 209.64, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ADP near 209.64, target 206.83, Stop Loss @ 210.13. Details

The technical summary data is suggesting a short of ADP if it tests 209.64 with a downside target of 206.83. We should have a stop loss in place at 210.13 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 209.64, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

ADP Ratings for June 23:

Term →	Near	Mid	Long
Rating	Weak	Neutral	Neutral
P1	0	0	206.83
P2	202.52	194.56	224.78
P3	209.64	203.88	243.08

Support and Resistance Plot Chart for ADP

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