Promising Signs: COUPANG INC Setting the Stage for a Breakout.

Our stock screener has identified COUPANG INC (NYSE:CPNG) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:CPNG.

Technical Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 9 out of 10 to CPNG. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CPNG is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• CPNG is part of the Broadline Retail industry. There are 33 other stocks in this industry. CPNG outperforms 84% of them.
• CPNG 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 CPNG is lagging the market slightly.
• In the last month CPNG has a been trading in the 21.14 - 23.77 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.
• When comparing the yearly performance of all stocks, we notice that CPNG is one of the better performing stocks in the market, outperforming 93% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Our latest full technical report of CPNG contains the most current technical analsysis.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CPNG exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

CPNG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:CPNG 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 screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.