BJ'S WHOLESALE CLUB HOLDINGS is setting up nicely for a 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.

Technical analysis of NYSE:BJ

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to BJ. In the last year, BJ 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.
• 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 part of the Food & Staples Retailing industry. There are 43 other stocks in this industry. BJ outperforms 97% of them.
• 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, so some resistance may be found above.

Why is NYSE:BJ a setup?

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:BJ scores a 8 out of 10:

Besides having an excellent technical rating, BJ also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 74.08, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.