Good technical signals and a possible breakout for ANALOG DEVICES INC.

Our stock screener has spotted ANALOG DEVICES INC (NASDAQ:ADI) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:ADI.

Technical analysis of NASDAQ:ADI

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.

Taking everything into account, ADI scores 8 out of 10 in our technical rating. Although ADI is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• ADI is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so ADI slightly outperforms the market at the moment.
• In the last month ADI has a been trading in the 159.58 - 170.95 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, ADI did better than 84% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• ADI is an average performer in the Semiconductors & Semiconductor Equipment industry, it outperforms 55% of 107 stocks in the same industry.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:ADI this score is currently 9:

ADI 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 171.91. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 167.66, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ADI in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:ADI?

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.

Of course, there are many ways to trade or not trade NASDAQ:ADI and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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