NASDAQ:CPRT may be ready to breakout.

A possible breakout setup was detected on COPART INC (NASDAQ:CPRT) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:CPRT.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

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

• 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 CPRT is one of the better performing stocks in the market, outperforming 93% of all stocks. We also observe that the gains produced by CPRT over the past year are nicely spread over this period.
• CPRT is one of the better performing stocks in the Commercial Services & Supplies industry, it outperforms 89% of 79 stocks in the same industry.
• CPRT is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so CPRT is leading the market.
• In the last month CPRT has a been trading in the 42.80 - 45.64 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

Check the latest full technical report of CPRT for a complete technical analysis.

Why is NASDAQ:CPRT 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 NASDAQ:CPRT this score is currently 9:

Besides having an excellent technical rating, CPRT also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 45.60. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.68, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.