NYSE:EQR may be ready to breakout.

Equity Residential (NYSE:EQR) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:EQR.

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

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 9 out of 10 to EQR. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, EQR is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, EQR did better than 81% of all other stocks. On top of that, EQR also shows a nice and consistent pattern of rising prices.
• EQR is part of the Equity Real Estate Investment Trusts (REITs) industry. There are 225 other stocks in this industry. EQR outperforms 76% of them.
• EQR is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month EQR has a been trading in a tight range between 83.14 and 88.09.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:EQR scores a 9 out of 10:

EQR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 87.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 87.01, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:EQR

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.

Of course, there are many ways to trade or not trade NYSE:EQR and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.