FRESHWORKS INC-CL A is setting up nicely for a breakout.

FRESHWORKS INC-CL A (NASDAQ:FRSH) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:FRSH.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, FRSH scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, FRSH is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that FRSH is one of the better performing stocks in the market, outperforming 96% of all stocks. We also observe that the gains produced by FRSH over the past year are nicely spread over this period.
• FRSH is part of the Software industry. There are 286 other stocks in this industry. FRSH outperforms 94% of them.
• FRSH is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month FRSH has a been trading in the 20.31 - 22.95 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of FRSH for a complete technical analysis.

How do we evaluate the setup for NASDAQ:FRSH?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:FRSH has a 9 as its setup rating, indicating its current consolidation status.

FRSH has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 21.58, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FRSH in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:FRSH

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.

Of course, there are many ways to trade or not trade NASDAQ:FRSH and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.