CARETRUST REIT INC (NYSE:CTRE) - A Strong Technical Setup for Breakout Investors

CARETRUST REIT INC (NYSE:CTRE) has emerged as a standout candidate in our technical breakout screen, displaying both strong momentum and a well-defined consolidation pattern. The stock’s high ratings in technical health and setup quality suggest potential for a continuation of its upward trend. Below, we examine why CTRE stands out for traders looking for breakout opportunities.

Technical Strength

CTRE scores a 9 out of 10 in ChartMill’s Technical Rating, reflecting its strong trend across multiple timeframes. Key observations include:

• Positive Trends: Both short-term and long-term trends are upward, reinforcing the stock’s bullish momentum.
• Relative Strength: CTRE outperforms 90% of stocks in the Diversified REITs sector, indicating leadership within its industry.
• Moving Averages: The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, confirming broad-based support.
• Recent Performance: Over the past three months, CTRE has gained nearly 18%, demonstrating sustained buying interest.

For a deeper look at the technicals, review the full technical report here.

Setup Quality

With a Setup Rating of 9, CTRE presents a compelling consolidation pattern:

• Tight Trading Range: The stock has been consolidating between $27.27 and $29.75 over the past month, now approaching the upper end of this range.
• Support Levels: A clear support zone exists near $29.23, providing a logical stop-loss area for traders.
• Reduced Volatility: Recent price action shows declining volatility, often a precursor to a breakout.
• Pocket Pivot Signal: A recent accumulation signal suggests institutional interest, adding further credibility to the setup.

Trade Considerations

A potential breakout could occur above $29.76, with a stop-loss level near $27.96 to manage risk. The trade setup implies a 6% risk per position, which aligns with disciplined risk management practices.

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Disclaimer

This is not investment advice. The analysis reflects observations at the time of writing, and market conditions can change rapidly. Always conduct your own research before making trading decisions.