Good technical signals and a possible breakout for FIRST HORIZON CORP.

A possible breakout setup was detected on FIRST HORIZON CORP (NYSE:FHN) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could 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.

Taking everything into account, FHN scores 7 out of 10 in our technical rating. Although FHN 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!
• FHN is part of the Banks industry. There are 309 other stocks in this industry. FHN outperforms 98% of them.
• FHN is currently trading in the upper part of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So FHN is doing quite good in this market.
• 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.

How does the Setup look for NYSE:FHN

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. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 23.01, a Stop Loss order could be placed below this zone.

How can NYSE:FHN be traded?

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.