FERGUSON PLC is setting up nicely for a breakout.

We've identified FERGUSON PLC (NYSE:FERG) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:FERG for further developments.

Zooming in on the technicals.

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.

We assign a technical rating of 7 out of 10 to FERG. Although FERG is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• 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!
• FERG is part of the Trading Companies & Distributors industry. There are 52 other stocks in this industry. FERG outperforms 72% of them.
• FERG is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so FERG is leading the market.
• Looking at the yearly performance, FERG did better than 89% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• In the last month FERG has a been trading in a tight range between 156.50 and 163.91.

Our latest full technical report of FERG contains the most current technical analsysis.

How do we evaluate the setup for NYSE:FERG?

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:FERG scores a 9 out of 10:

Besides having an excellent technical rating, FERG also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 159.81. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 157.27, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:FERG?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

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.