FIDELITY NATIONAL INFO SERV (NYSE:FIS) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of strong technical health and a high-quality setup pattern, making it worth a closer look for traders focused on momentum and consolidation breakouts.
Technical Strength
FIS currently holds a Technical Rating of 8, indicating a favorable trend across both short and long-term timeframes. Key observations from the technical report include:
- Positive Trends: Both short-term and long-term trends are upward, reinforcing the stock’s bullish momentum.
- Relative Strength: FIS outperforms 72% of stocks in the Financial Services sector, signaling market leadership.
- Moving Averages: The stock is trading above key moving averages (20-day, 50-day, 100-day, and 200-day), confirming broad-based support.
- Recent Performance: The stock has gained 6.66% over the past month and 13% over the last three months, reflecting accelerating momentum.
Setup Quality
With a Setup Rating of 9, FIS presents a well-defined consolidation pattern, often a precursor to a breakout. Key aspects of the setup include:
- Tight Trading Range: Prices have consolidated between $75.66 and $81.31 in recent weeks, reducing volatility and forming a clear base.
- Support Zones: Multiple support levels exist below the current price, including a strong zone between $79.23 and $80.15, providing a logical stop-loss area.
- Low Overhead Resistance: Minimal resistance lies above the current price, increasing the likelihood of an upward move if the breakout occurs.
- Pocket Pivot Signal: A recent accumulation pattern suggests institutional buying interest, adding further confirmation.
Potential Trade Setup
The technical analysis suggests a possible breakout above $83.43, with a stop-loss near $79.22. This setup offers a favorable risk-reward ratio, with a potential loss of 5.05% if the trade fails, while upside momentum could extend further.
For more breakout opportunities, check our Technical Breakout Setups screener, updated daily.
Disclaimer
This is not investment advice. The analysis is based on technical observations at the time of writing, and market conditions can change rapidly. Always conduct your own research before making trading decisions.
