A possible breakout setup was detected on GRAPHIC PACKAGING HOLDING CO (NYSE:GPK) 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:GPK.
Technical analysis of NYSE:GPK
Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.
Overall GPK gets a technical rating of 8 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, GPK is showing a nice and steady performance.
- The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
- Looking at the yearly performance, GPK did better than 90% of all other stocks. On top of that, GPK also shows a nice and consistent pattern of rising prices.
- GPK is part of the Containers & Packaging industry. There are 27 other stocks in this industry. GPK outperforms 92% of them.
- GPK is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so GPK slightly outperforms the market at the moment.
Looking at the Setup
Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:GPK this score is currently 9:
GPK 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 very little resistance above the current price. There is a support zone below the current price at 23.57, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.
How to trade NYSE:GPK?
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 NYSE:GPK 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.
Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.
