NYSE:AFL may be ready to breakout.

A possible breakout setup was detected on AFLAC INC (NYSE:AFL) 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 NYSE:AFL.

Technical Analysis Observations

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 AFL. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, AFL is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, AFL did better than 86% of all other stocks.
• AFL is one of the better performing stocks in the Insurance industry, it outperforms 79% of 148 stocks in the same industry.
• AFL 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 AFL has a been trading in a tight range between 70.03 and 74.02.
• Volume is considerably higher in the last couple of days.

Why is NYSE:AFL a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:AFL scores a 9 out of 10:

AFL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 73.84. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 72.5, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AFL in the last couple of days, which is a good sign.

How to trade NYSE:AFL?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:AFL 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.