Will ANALOG DEVICES INC breakout?

ANALOG DEVICES INC (NASDAQ:ADI) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:ADI.

Technical analysis of NASDAQ:ADI

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

We assign a technical rating of 8 out of 10 to ADI. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ADI is only an average performer.

• 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 - 172.03 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, ADI did better than 85% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• ADI is an average performer in the Semiconductors & Semiconductor Equipment industry, it outperforms 66% 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 10:

Besides having an excellent technical rating, ADI also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. 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 168.46, 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. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:ADI

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the 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.

More breakout setups can be found in our Breakout analyzer.