Will ARCH CAPITAL GROUP LTD breakout?

A possible breakout setup was detected on ARCH CAPITAL GROUP LTD (NASDAQ:ACGL) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:ACGL.

Technical analysis of NASDAQ:ACGL

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 9 out of 10 to ACGL. Both in the recent history as in the last year, ACGL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that ACGL is one of the better performing stocks in the market, outperforming 92% of all stocks.
• ACGL is one of the better performing stocks in the Insurance industry, it outperforms 91% of 149 stocks in the same industry.
• ACGL is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month ACGL has a been trading in a tight range between 61.85 and 64.37.

Why is NASDAQ:ACGL a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:ACGL currently has a 9 as setup rating:

ACGL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 64.05. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 63.62, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ACGL in the last couple of days, which is a good sign.

Trading setups like NASDAQ:ACGL

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.