VantagePoint: ADP's Uptrend Has Legs

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs, and cryptocurrencies. 

The VantagePoint Trading Journal On ADP

The VantagePoint platform recently indicated a potential breakout in Automatic Data Processing ADP could be forming due to a crossover to the upside on February 15. Let's break down what the chart above shows.

A Bullish Crossover

You can see how the stock was in a downtrend for the first two weeks of February ADP was down over 5 percent. But notice the change in trend that occurred last week.

The blue line on the chart, a predicted moving average, crossed above the black line, a simple 10-day moving average. In this case of ADP, the blue line is forecasting the stock's moving average two days in advance. 

In other words, ADP's moving average in two days is predicted to be higher than the 10-day moving average. This is a bullish signal. 

Confirmation Of The Trend Change

Note the red-green bar at the bottom of the chart. That's a Neural Index, which predicts whether a stock will move higher or lower at all in the next two days. The change from red to green on Feb. 9 serves as confirmation of near-term strength in the stock. 

Since the initial crossover on Feb. 15, the stock is up 3 percent. Until the two moving average lines cross again, look for this bullish trend to continue.

VantagePoint is an editorial partner of Benzinga. For a free demo of the platform, click here.