Will GRAPHIC PACKAGING HOLDING CO breakout?

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

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to GPK. Both in the recent history as in the last year, GPK has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that GPK is one of the better performing stocks in the market, outperforming 90% of all 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 88% 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.
• In the last month GPK has a been trading in the 22.91 - 25.17 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

How do we evaluate the setup for NYSE:GPK?

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. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 23.85, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:GPK

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the 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.

More breakout setups can be found in our Breakout analyzer.