DANA INC (NYSE:DAN) Shows Top Technical Rating and Bullish Setup for Potential Breakout

For investors looking to find potential breakout chances, joining technical strength with good entry timing can be an effective method. The process used here applies ChartMill's own Technical Rating and Setup Quality Rating to sort for stocks showing both good basic technical condition and consolidation shapes that point to positive entry spots. Stocks with high marks on both measures often represent companies with solid technicals ready for possible upward moves, while the setup quality helps find the best buying moments inside existing trends.

Technical Strength Evaluation

DANA INC (NYSE:DAN) shows very good technical features, getting a top Technical Rating of 10 out of 10. This highest rating shows broad strength over several technical areas that are important for finding market leaders. The stock's technical base seems strong over both short and long-term periods, with a number of main points adding to this view:

• Both short-term and long-term trends are clearly positive, showing continued upward momentum
• The stock has produced strong yearly results, doing better than 96% of all stocks in the market
• Inside the competitive Automobile Components industry made up of 82 stocks, DAN does better than 95% of its group
• Present trading close to 52-week highs shows strong investor belief
• Good average daily volume of about 1.9 million shares provides sufficient liquidity

These technical features together place DAN as a technically strong stock, answering the important "which stock" question for technical investors. The top rating implies the stock keeps leader qualities that usually come before continued strength.

Setup Quality Review

Besides technical strength, DAN shows an interesting setup shape with a Setup Quality Rating of 8 out of 10. This means the stock is now moving within a set area, possibly giving a planned entry spot for breakout traders. The setup review shows particular price points that technical traders may watch:

• Resistance area between $21.71 and $21.75 marks the close breakout point
• Several support areas give downside safety, with the closest at $19.76
• Recent trading between $19.06 and $22.13 displays consolidation after past gains
• The present pullback from recent highs may offer an entry chance

This consolidation shape deals with the "when to buy" question by marking clear resistance and support points. The setup implies that a breakout above the resistance area could mark the next upward move, while the set support gives a reasonable area for stop-loss setting.

Trading Points

For investors thinking about this possible breakout setup, the technical review suggests specific price points to watch. A breakout above $21.76 could work as an entry signal, while a move below $19.99 might show the setup is no longer valid. The space between these points is about 8.13% of risk, which traders can use for position size based on their risk comfort.

The joining of top technical ratings and good setup quality makes DAN worth notice for technical investors. Still, as with any technical setup, confirmation through price movement is needed, and correct risk handling through position size and stop-loss orders is important.

Investors wanting to look for similar technical breakout chances can find more choices through the Technical Breakout Setups Screen, which regularly searches for stocks fitting these technical and setup rules.

Disclaimer: This review is based on technical indicators and should not be taken as investment advice. Always do your own research and think about your risk comfort before making investment choices. Technical analysis does not promise future results and should be used as one part of a full investment plan.