NYSE:FHN may be ready to 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 Observations

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 8 out of 10 to FHN. 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 part of the Banks industry. There are 310 other stocks in this industry. FHN outperforms 98% of them.
• FHN is currently trading near its 52 week high. This is a good sign, definitely because the S&P500 Index is trading in the lower area of its yearly range.
• Looking at the yearly performance, FHN did better than 96% 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.

Why is NYSE:FHN a 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 7 as setup rating:

Besides having an excellent technical rating, FHN 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 23.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.11, a Stop Loss order could be placed below this zone.

Trading breakout setups.

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.

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.

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