Company Description: Paychex, Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses in the United States and Germany. It offers payroll processing services, which include calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients’ payroll obligations. The company also provides payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. Its human resource outsourcing services include payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative. In addition, the company offers retirement services administration; workers’ compensation insurance services; health and benefits services; time and attendance solutions; and other human resource services and products. It also operates a professional employer organization. As of May 31, 2009, the company served approximately 554,000 clients in the United States; and 1,600 clients in Germany. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York..

Our Analysis: The shares of Paychex, Inc. 'PAYX' moved lower yesterday and closed below a pair of recently established support level. This is a bearish trading indicator. The shares of 'PAYX' should continue to move lower and test $29.14/share, the point from which it gapped higher on the open of trading on November 5th of last year. If the shares of 'PAYX' close below that level, then I expect them to continue to move lower and test $28.06/share, a point of downside support established on October 2nd, 2010. I see upside resistance on the shares of 'PAYX' @ $30.95/share, and have set my stops accordingly at $31.37/share.