QUEST DIAGNOSTICS INC (NYSE:DGX) – A Strong Technical Setup for Breakout Traders

QUEST DIAGNOSTICS INC (NYSE:DGX) has been identified as a strong technical candidate by our breakout screener. The stock currently holds a perfect Technical Rating of 10 and a high Setup Quality score of 9, signaling both a healthy trend and a favorable consolidation pattern. Below, we break down why DGX stands out for traders looking for potential breakout opportunities.

Technical Strength

• Trend Performance: DGX is in a clear uptrend, with both short-term and long-term trends rated as positive. The stock is trading near its 52-week high, outperforming 85% of the broader market.
• Moving Averages: The stock is well above its key moving averages (20-day, 50-day, 100-day, and 200-day), confirming sustained bullish momentum.
• Relative Strength: DGX has shown consistent strength compared to the broader market, with gains spread evenly over the past year.

Setup Quality

• Consolidation Pattern: Prices have been consolidating in a tight range, reducing volatility and forming a clear support zone between $174.35 and $176.95.
• Resistance Breakout Potential: A resistance level sits just above the current price at $178.13-$178.51. A breakout above this zone could signal further upside.
• Recent Signals: A recent "Pocket Pivot" pattern—a bullish volume-driven signal—adds confidence to the setup.

Trade Considerations

• Entry Point: A breakout above $178.52 could serve as an entry trigger.
• Stop Loss: A stop below $174.34 (just under support) limits downside risk to ~2.34%.
• Portfolio Allocation: A 25% position sizing keeps portfolio risk at a manageable 0.59%.

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

More breakout candidates can be found in our Technical Breakout Setups screener, updated daily.

Disclaimer

This is not investment advice. Always conduct your own analysis and consider risk management before trading.