COMMERCIAL METALS CO (NYSE:CMC) 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:CMC.
What is the technical picture of NYSE:CMC 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.
Taking everything into account, CMC scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, CMC 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 CMC is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by CMC over the past year are nicely spread over this period.
- CMC is one of the better performing stocks in the Metals & Mining industry, it outperforms 95% of 973 stocks in the same industry.
- CMC is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so CMC slightly outperforms the market at the moment.
- CMC 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.
Looking at the 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:CMC scores a 9 out of 10:
CMC has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 47.64, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CMC in the last couple of days, which is a good sign.
Trading setups like NYSE:CMC
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:CMC 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.
Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.