Ceridian HCM Holding Inc (NYSE: CDAY)

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions.

Take a look at the 1-year chart of Ceridian (NYSE: CDAY) below with my added notations:

During the past 3 months, CDAY has repeatedly hit the $54 mark (red) as resistance. The stock looks like it may be on its way back up to that area again, and a solid close above that $54 level should lead to much higher prices for CDAY.

The Tale of the Tape: CDAY has a key level of resistance at $54. A long trade could be entered on a hold above that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $54.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT