Based on good technical signals, AZEK CO INC/THE is potentially setting up for a breakout.

AZEK CO INC/THE (NYSE:AZEK) 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:AZEK.

Technical analysis of NYSE:AZEK

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, AZEK scores 8 out of 10 in our technical rating. Both in the recent history as in the last year, AZEK has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that AZEK is one of the better performing stocks in the market, outperforming 94% of all stocks.
• AZEK is one of the better performing stocks in the Building Products industry, it outperforms 86% of 45 stocks in the same industry.
• AZEK is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month AZEK has a been trading in the 35.38 - 38.98 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.

Our latest full technical report of AZEK contains the most current technical analsysis.

Looking at the Setup

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:AZEK currently has a 10 as setup rating:

Besides having an excellent technical rating, AZEK also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 38.39. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.61, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AZEK in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:AZEK?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.