QUEST DIAGNOSTICS INC (NYSE:DGX) Shows Potential for a Breakout.

Our stock screener has flagged QUEST DIAGNOSTICS INC (NYSE:DGX) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:DGX for potential movement.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall DGX gets a technical rating of 9 out of 10. DGX has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• Looking at the yearly performance, DGX did better than 91% of all other stocks. On top of that, DGX also shows a nice and consistent pattern of rising prices.
• DGX is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 90% of 105 stocks in the same industry.
• DGX is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month DGX has a been trading in the 157.20 - 176.50 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

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

Why is DGX a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, DGX has a 8 as its setup rating:

DGX 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 175.88. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 169.16, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found 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.