By Mill Chart
Last update: Jul 29, 2025
Technical breakout setups are a common strategy for traders aiming to profit from stocks displaying solid momentum and consolidation patterns. The method uses two main metrics: the ChartMill Technical Rating, which measures a stock’s overall trend strength, and the ChartMill Setup Quality Rating, which spots whether the stock is forming a good consolidation pattern for a possible breakout. Stocks with high scores in both areas often offer appealing risk-reward scenarios.
FLOWSERVE CORP (NYSE:FLS) is currently a notable example, with a Technical Rating of 9 and a Setup Rating of 10, signaling both strong trend performance and a well-formed consolidation pattern.
The ChartMill Technical Rating checks several factors, such as relative strength, moving averages, and trend consistency. FLS scores well because of the following:
These elements fit the main idea of breakout trading: finding stocks with clear uptrends that are more likely to keep rising.
The Setup Rating checks if a stock is forming a tradable base. FLS scores a perfect 10, meaning it has an ideal setup for breakout traders:
This mix of factors suggests FLS is in a "coiling" phase, where a breakout above resistance could lead to a significant upward move.
The technical report highlights a possible trade setup:
While the setup looks promising, traders should:
For traders looking for other high-quality breakout candidates, the Technical Breakout Setups screen updates daily with stocks showing strong technicals and consolidation patterns.
Disclaimer: This analysis is not investment advice. Always do your own research and use risk management strategies before trading.
56
-0.2 (-0.36%)
Find more stocks in the Stock Screener