Will FIRST HORIZON CORP breakout?

Our stock screener has spotted FIRST HORIZON CORP (NYSE:FHN) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:FHN.

Technical analysis of NYSE:FHN

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.

Taking everything into account, FHN scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, FHN is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• FHN is one of the better performing stocks in the Banks industry, it outperforms 97% of 311 stocks in the same industry.
• FHN is currently trading near its 52 week high, which is a good sign. Certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• Looking at the yearly performance, FHN did better than 95% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• In the last month FHN has a been trading in a tight range between 22.39 and 23.65.
• Volume is considerably higher in the last couple of days.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:FHN currently has a 8 as setup rating:

FHN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 23.7. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.33, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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.

Of course, there are many ways to trade or not trade NYSE:FHN 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.

More breakout setups can be found in our Breakout analyzer.