NYSE:CMA may be ready to breakout.

Our stock screener has spotted Comerica Inc (NYSE:CMA) 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:CMA.

Technical Analysis Observations

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.

We assign a technical rating of 8 out of 10 to CMA. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CMA is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, CMA did better than 85% of all other stocks. We also observe that the gains produced by CMA over the past year are nicely spread over this period.
• CMA is one of the better performing stocks in the Banks industry, it outperforms 82% of 334 stocks in the same industry.
• CMA 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 CMA is lagging the market slightly.
• In the last month CMA has a been trading in the 70.31 - 76.00 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

How do we evaluate the setup for NYSE:CMA?

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:CMA scores a 8 out of 10:

Besides having an excellent technical rating, CMA also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 74.4. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.68, a stop order could be placed below this zone.

Trading setups like NYSE:CMA

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:CMA 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.