Editor's Note:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:

(bullish ideas) WAT, HON, RE, BEAV, ORLY, TYL, MJN, APA, AMG

(bearish ideas) NVO, FAST,


Automatic Data Processing - ADP - close: 68.70 change: +0.69

Stop Loss: 67.00
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADP is in the business services and software industry. The stock was a steady winner for months following its November 2012 low. Shares peaked in May this year. Now after a four-week, -6% correction lower, it looks like ADP may have found a new bottom. The stock has bounce twice in the $67.00-67.50 zone just this month and ADP looks poised to breakout past short-term resistance near $69.00 soon.

I am suggesting a trigger to buy calls at $69.25. If triggered our target is $74.00 but that could be optimistic since ADP still has resistance at $72.00. We may need patience to give ADP time to hit our target.

Trigger @ 69.25

- Suggested Positions -

Buy the Aug $70 call (ADP1317H70) current ask $1.30

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 1.8 million
Listed on June 17, 2013