ELEMENT SOLUTIONS INC (NYSE:ESI) Shows Strong Technical Setup for Potential Breakout

ELEMENT SOLUTIONS INC (NYSE:ESI) presents a notable case for technical investors looking for breakout chances. The stock has been found using a methodical screening process that uses two specific metrics: the ChartMill Technical Rating, which measures the overall technical condition of a stock, and the ChartMill Setup Quality Rating, which examines the consolidation pattern and entry quality. This two-rating method helps find stocks that are both in good uptrends and creating practical trading setups with clear risk levels.

Technical Strength and Market Position

Element Solutions shows solid technical features, receiving a Technical Rating of 8 out of 10. This score shows good momentum across various timeframes, with both short-term and long-term trends rated as positive, a key trait for stocks expected to keep moving upward. The stock trades well above its major moving averages (20-day: $25.63, 50-day: $24.75, 100-day: $23.16), confirming the current trend's strength.

Additional technical strengths include:

• Relative strength ranking of 70.89, doing better than 74% of stocks in the chemicals industry
• Trading in the upper part of its 52-week range ($16.77-$29.78)
• Good performance across multiple time periods (+4.36% monthly, +25.27% quarterly)

These factors together show that ESI keeps good technical momentum, making it appropriate for trend-following methods. The Technical Rating system focuses on these traits because stocks with higher ratings often show lasting strength and a smaller chance of trend change.

Setup Quality and Consolidation Pattern

Besides its technical strength, Element Solutions shows a very good setup configuration with a Setup Rating of 9 out of 10. This high score means the stock has been consolidating in a narrow range lately, forming a clear base pattern that frequently comes before notable price moves. The setup study shows lower volatility with prices trading between $24.44 and $26.46 over the last month, now nearing the top of this range.

Key setup features include:

• Clear support area between $24.63-$25.87 made by several trendlines and moving averages
• Little resistance above current price levels, with only small resistance at $26.57
• Recent pocket pivot signal showing institutional buying
• Average True Range of 2.03%, giving acceptable volatility for position sizing

The Setup Quality measure is important because it finds consolidation phases within good trends, these patterns provide favorable risk-reward chances with precise entry points and stop-loss levels. The current setup indicates a possible breakout above $26.58 with a stop-loss near $24.43, meaning a measured risk of about 8.09%.

Investment Considerations and Market Context

While the technical setup looks encouraging, investors should think about several factors. The chemicals sector involvement offers both possibilities and risks connected to industrial production cycles. The stock's volume profile stays healthy with average daily volume of about 1.95 million shares, providing sufficient liquidity for most trading methods. The wider market environment stays supportive, with the S&P500 showing good trends in both short-term and long-term timeframes.

The full technical analysis report for ELEMENT SOLUTIONS INC (NYSE:ESI) is available for more detailed study: View Full Technical Report

For investors looking for similar technical breakout chances, more screened results are available through our Technical Breakout Setups screening tool: Explore More Breakout Setups

Disclaimer: This analysis is based on technical indicators and pattern recognition and should not be considered investment advice. All investments carry risk, and past performance does not guarantee future results. Investors should conduct their own research and consider their risk tolerance before making investment decisions.