These 2 Software Stocks Trace Double Bottoms, While ZTO Breaks Out

 The stock market was mostly lower in midday trade Monday, yet Leaderboard stock ZTO Express (ZTO) broke out past a potential buy point. Meanwhile, top stocks Workday (WDAY) and Paycom Software (PAYC) neared the completion of double-bottom bases in the stock market today. Also, a sharp decline in the price of oil resulted in a sell signal for top energy stock Marathon Oil (MRO).

Software Stocks Near Buy Points

Workday is within striking distance of a double bottom's 138.75 buy point amid the stock's furious recent rebound, according to MarketSmith chart analysis. A previous breakout above a 133.66 double-bottom buy point failed when the stock fell more than 7% below the entry.

In the most recent quarter, earnings and sales growth measured 14% and 29% vs. the year-ago period.

IBD 50 stock Paycom Software is etching a double bottom with a 115.64 buy point. Shares regained their 50-day line last week during the stock's six-day win streak.

On the downside, the stock's relative strength line is lagging. The RS line measures the stock's performance relative to the general market. An uptrending line shows outperformance, while a declining line indicates underperformance. The RS Line should hit a new high on the breakout day or shortly thereafter, confirming the breakout's strength.

Top Energy Name Triggers Sell Signal

Oil prices sharply fell Monday, declining almost 4%. Marathon Oil hit the 7%-8% sell signal from a base on base's 22.22 buy point. In addition, the stock is breaking down through its 50-day line in heavy volume, another reason to sell.

The stock's July 10 breakout started off on the wrong foot. Shares were initially strong when the stock gained the buy point, but was unable to maintain the day's gains and closed below the entry.

ZTO Express Delivers A New Breakout

IPO Leader ZTO Express is breaking out above a 21.80 buy point Monday, as the stock advanced more than 7%. Volume was tracking almost 70% above average. Shares are trading right at the entry midday Monday. The Chinese company that provides express delivery service in China is quickly gaining market share.

Tip: Before making any investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out Leaderboard and SwingTrader.