Good technical signals and a possible breakout for Brookfield Asset Management Inc.

A possible breakout setup was detected on Brookfield Asset Management Inc (NYSE:BAM) 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:BAM.

Technical analysis of NYSE:BAM

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall BAM gets a technical rating of 8 out of 10. In the last year, BAM was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, BAM did better than 83% of all other stocks. We also observe that the gains produced by BAM over the past year are nicely spread over this period.
• BAM is part of the Capital Markets industry. There are 196 other stocks in this industry. BAM outperforms 72% of them.
• BAM 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.
• BAM is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• In the last month BAM has a been trading in a tight range between 54.27 and 57.25.

How do we evaluate the setup for NYSE:BAM?

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:BAM this score is currently 8:

BAM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. We notice that large players showed an interest for BAM in the last couple of days, which is a good sign.

Trading setups like NYSE:BAM

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

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

More breakout setups can be found in our Breakout analyzer.