FIDELITY NATIONAL INFO SERV (NYSE:FIS) Shows Strong Breakout Potential with High Technical and Setup Ratings

Technical breakout trading identifies stocks with strong trends that are consolidating before their next upward move. The strategy uses two main metrics: the ChartMill Technical Rating, which measures a stock’s trend strength, and the ChartMill Setup Quality Rating, which checks if the stock is forming a high-probability breakout pattern. Stocks scoring well on both metrics often offer good risk-reward opportunities, as they combine momentum with clear entry and exit points.

FIDELITY NATIONAL INFO SERV (NYSE:FIS) matches this breakout setup, with a Technical Rating of 7 and a Setup Rating of 9, showing both a steady trend and a tight consolidation pattern.

Technical Strength: A Steady Uptrend

The Technical Rating of 7 indicates FIS is in a stable uptrend, supported by:

• Bullish Trends in All Timeframes: Both short-term and long-term trends are positive, confirming the stock’s upward movement.
• Strong Moving Average Position: The stock is above its 20-day, 50-day, and 100-day moving averages, showing consistent buying interest.
• Relative Performance: FIS has done better than 53% of all stocks over the past year, matching broader market performance but with room to grow compared to top sector stocks.

While the stock isn’t in the highest technical tier (which needs a score of 8+), its steady trend and position above key moving averages make it a good candidate for continuation trades. For more details, the full technical report offers further analysis.

Setup Quality: A Clear Consolidation Pattern

The key feature for FIS is its Setup Rating of 9, highlighting a well-defined consolidation. Key points include:

• Tight Trading Range: Over the past month, FIS has moved between $78.13 and $82.74, showing low volatility—a common sign of accumulation before a breakout.
• Support and Resistance Levels:
  • Support at $81.69: A strong base formed by multiple moving averages and trendlines, offering a logical stop-loss level.
  • Resistance at $83.42: A move above this level could signal further gains.
• Pocket Pivot Signal: Recent volume patterns suggest institutional buying, adding confidence to the setup.

The tight range and clear support/resistance levels make FIS an attractive breakout candidate. The suggested trade setup recommends entering above $83.43 (just past resistance) with a stop-loss below $79.91, limiting downside risk to 4.22%.

Why This Setup Works

Breakout strategies perform best when:

1. The Trend is Strong (Technical Rating ≥7): Ensures the stock isn’t facing broader market or sector weakness.
2. The Consolidation is Well-Defined (Setup Rating ≥7): Reduces risk by providing clear entry and exit points.
   FIS meets both conditions, offering a mix of momentum and structure.

Discovering More Breakout Opportunities

The Technical Breakout Screen updates daily with new setups like FIS. For those looking for similar opportunities, the Technical Breakout Setups screener filters for stocks with high Technical and Setup Ratings.

Disclaimer: This analysis is not investment advice. Always do your own research and manage risk before trading.