FRANKLIN RESOURCES INC is setting up nicely for a breakout.

FRANKLIN RESOURCES INC (NYSE:BEN) 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:BEN.

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

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.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• BEN 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.
• When comparing the performance of all stocks over the past year, BEN turns out to be only a medium performer in the overall market: it outperformed 58% of all stocks.
• BEN is an average performer in the Capital Markets industry, it outperforms 62% of 205 stocks in the same industry.
• BEN is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

How do we evaluate the setup for NYSE:BEN?

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:BEN currently has a 8 as setup rating:

BEN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 27.59. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.13, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BEN in the last couple of days, which is a good sign.

How can NYSE:BEN be traded?

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.

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 analyzer.