Promising Signs: BROOKFIELD ASSET MGMT-A Setting the Stage for a Breakout.

Our stockscreener has identified a possible breakout setup on BROOKFIELD ASSET MGMT-A (NYSE:BAM). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:BAM for potential opportunities.

Analyzing the Technical Aspects

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

Taking everything into account, BAM scores 7 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, BAM is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, BAM did better than 75% of all other stocks.
• BAM is one of the better performing stocks in the Capital Markets industry, it outperforms 76% of 208 stocks in the same industry.
• BAM 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 BAM is lagging the market slightly.
• In the last month BAM has a been trading in the 40.13 - 43.00 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 BAM contains the most current technical analsysis.

How does the Setup look for NYSE:BAM

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:BAM scores a 10 out of 10:

BAM has an excellent technical rating and 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 42.36. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 41.94, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BAM in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.