NYSE:GPS may be ready to breakout.

Our stockscreener has identified a possible breakout setup on GAP INC/THE (NYSE:GPS). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:GPS for potential opportunities.

In-Depth Technical Analysis of NYSE:GPS

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.

We assign a technical rating of 7 out of 10 to GPS. Although GPS is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• GPS is one of the better performing stocks in the Specialty Retail industry, it outperforms 96% of 130 stocks in the same industry.
• GPS is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so GPS is lagging the market slightly.
• GPS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, GPS did better than 97% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

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

How do we evaluate the setup for NYSE:GPS?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:GPS currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, GPS also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 20.88, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GPS in the last couple of days, which is a good sign.

Trading setups like NYSE:GPS

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.