Two Layers of Support Could Help Automatic Data Processing (ADP)
Automatic Data Processing (Nasdaq: ADP) is a human resource outsourcing firm, offering clients payroll, benefits administration, compliance and other services. The stock has been trending higher over the last few years before pulling back in this recent market downturn. There could be some good news, however, as the stock hit two levels this week that could act as support and help propel it higher.
In August, the stock dipped down to the $128 level before rallying up above the $150 level in early October. The stock dipped down to the $128 area again on Thursday before bouncing back.
The stock also dipped below its 52-week moving average this week, which is the first time it has dipped below the trendline in October 2016. From that point, the stock rallied from the $81.50 area to $115 within the year.
ADP scores very well in its fundamental ratings. The company gets an 89 rating in Investor’s Business Daily’s EPS rating system and it gets an A in the SMR category. The company has seen its earnings grow by 15% per year over the last three years and sales have grown by 7% per year during that same time period. The company boasts a return on equity of 52.2% and a profit margin of 19.7%. As good as those fundamental statistics are, they haven’t helped much during this recent slide in the overall market. If we see a bounce in the overall market, companies with strong fundamentals should see the biggest benefit.
ADP in upward trend: price may jump up because it broke its lower Bollinger Band on June 09, 2025
ADP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 29 cases where ADP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ADP's RSI Oscillator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where ADP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on July 11, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
ADP moved below its 50-day moving average on July 02, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ADP crossed bearishly below the 50-day moving average on June 25, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ADP entered a downward trend on July 08, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
Advertisement