NYSE:DAN may be ready to breakout.

Our stock screener has spotted Dana Inc (NYSE:DAN) 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:DAN.

What is the technical picture of NYSE:DAN telling us.

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.

Overall DAN gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DAN is only an average performer.

• The long and short term trends are both positive. This is looking good!
• In the last month DAN has a been trading in the 22.02 - 24.75 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that DAN is one of the better performing stocks in the market, outperforming 72% of all stocks. However, this overall performance is mostly based on the strong move around 10 months ago.
• DAN is part of the Auto Components industry. There are 43 other stocks in this industry, DAN did better than 65% of them.
• DAN is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DAN is lagging the market.

How do we evaluate the setup for NYSE:DAN?

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 NYSE:DAN this score is currently 9:

DAN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 24.19. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.91, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:DAN

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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 analyzer.