NYSE:ALLY Shows Potential for a Breakout.

ALLY FINANCIAL INC (NYSE:ALLY) 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 NYSE:ALLY.

Deciphering the Technical Picture of NYSE:ALLY

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 8 out of 10 to ALLY. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, ALLY is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• ALLY is part of the Consumer Finance industry. There are 53 other stocks in this industry. ALLY outperforms 76% of them.
• ALLY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so ALLY is lagging the market slightly.
• In the last month ALLY has a been trading in the 34.85 - 38.03 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When comparing the yearly performance of all stocks, we notice that ALLY is one of the better performing stocks in the market, outperforming 86% of all stocks. However, this overall good ranking is mostly due to the recent strong move.

For an up to date full technical analysis you can check the technical report of ALLY

How do we evaluate the setup for NYSE:ALLY?

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. NYSE:ALLY currently has a 9 as setup rating:

Besides having an excellent technical rating, ALLY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 37.37. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for ALLY in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:ALLY?

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.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.