Performance metrics and trade details for PAYC breakout.
Paycom reported strong earnings on February 5th, 2019, and the stock gapped up significantly the next day. However, it was clearly extended, trading nearly 10 times its ATR above the 50-day moving average (as indicated by the yellow dots). Despite the initial strength, it sold off intraday and closed in the red on the first post-earnings day.
The following day, the stock gapped down but quickly bounced before reaching S1, then reclaimed the prior day's low, offering an OOPS reversal entry—a classic gap-down reversal setup. The stock moved higher from there and eventually became extended again, which—in hindsight—signaled a good opportunity to take partial profits around the 10% mark.
A few days later we exit after it closed below 10 EMA for the first time with about 6% gain for the rest position.
