Will ASSOCIATED BANC-CORP breakout?

ASSOCIATED BANC-CORP (NYSE:ASB) 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:ASB.

What is the technical picture of NYSE:ASB telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, ASB scores 7 out of 10 in our technical rating. In the last year, ASB was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• ASB is part of the Banks industry. There are 312 other stocks in this industry. ASB outperforms 72% of them.
• In the last month ASB has a been trading in the 19.40 - 21.33 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, ASB did better than 87% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• ASB is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so ASB is still doing slightly better than the market.
• Volume is considerably higher in the last couple of days.

How do we evaluate the setup for NYSE:ASB?

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 NYSE:ASB this score is currently 9:

Besides having an excellent technical rating, ASB 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 21.22. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.71, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ASB 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 breakout setups.

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 NYSE:ASB 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.

Our Breakout analyzer lists more breakout setups and is updated daily.