Trade Setups

Trade Setup: PAYX

Setup:

We entered Paychex, Inc. (PAYX) through our Meta Setup Score strategy. The position is active and will be managed with a defined hard stop, staged profit targets, and a no-add rule.

Why It Matters:

PAYX met our Meta Setup Score criteria and is holding above its 20-day simple moving average. The setup provides clearly defined downside while allowing us to participate if the stock continues higher.

Entry Price:

$123.38

Technical Structure:

The 20-day simple moving average near $119.50 is the key support level for this trade. As long as PAYX holds above that area, the setup remains intact.

Stop:

$119.50 is a hard stop, placed at the 20-day simple moving average.

Targets:

Target 1: $127.26, approximately 1R
Target 2: $131.14, approximately 2R
Target 3: $135.02, approximately 3R

Risk/Reward:

Risk from entry to the stop is $3.88 per share, or approximately 3.1%. With 100 shares, maximum risk is $388, or approximately 0.13% of a $300,000 account. The second and third targets provide approximately 2R and 3R, respectively.

Status:

Open

Trade Plan:

We entered PAYX at $123.38 with $119.50 serving as our line in the sand. We will not add to the position unless PAYX first reaches and holds above $127.26.

At $131.14, we will sell 15 shares and raise the stop on the remaining position to breakeven at $123.38. At $135.02, we will sell another 15 shares and trail the final 70 shares below confirmed daily swing lows.

What We're Watching:

We are watching for PAYX to hold above $119.50, advance constructively above $127.26, and make progress toward the first profit target without breaking key support.

Setup Date:

August 20, 2026

Disclaimer:

This article is for educational purposes only and is not investment advice. Investing involves risk, including the possible loss of principal. Always conduct your own research and consider your personal financial situation before making investment decisions.

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