Will BJ'S WHOLESALE CLUB HOLDINGS breakout?

Our stock screener has spotted BJ'S WHOLESALE CLUB HOLDINGS (NYSE:BJ) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:BJ.

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

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

Overall BJ gets a technical rating of 10 out of 10. Both in the recent history as in the last year, BJ has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that BJ is one of the better performing stocks in the market, outperforming 97% of all stocks. On top of that, BJ also shows a nice and consistent pattern of rising prices.
• BJ is one of the better performing stocks in the Food & Staples Retailing industry, it outperforms 97% of 43 stocks in the same industry.
• BJ is currently trading in the upper part of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So BJ is doing quite good in this market.
• In the last month BJ has a been trading in the 72.41 - 79.69 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.

Why is NYSE:BJ a setup?

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:BJ this score is currently 8:

Besides having an excellent technical rating, BJ also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 73.84, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:BJ

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:BJ 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.