Good technical signals and a possible breakout for HOLOGIC INC.

A possible breakout setup was detected on HOLOGIC INC (NASDAQ:HOLX) 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 NASDAQ:HOLX.

Insights from Technical Analysis

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

Overall HOLX gets a technical rating of 7 out of 10. Although HOLX 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 term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the performance of all stocks over the past year, HOLX turns out to be only a medium performer in the overall market: it outperformed 44% of all stocks.
• HOLX is part of the Health Care Equipment & Supplies industry. There are 196 other stocks in this industry, HOLX did better than 65% of them.
• HOLX is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so HOLX is lagging the market.
• In the last month HOLX has a been trading in a tight range between 73.05 and 77.14.

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

How do we evaluate the setup for NASDAQ:HOLX?

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

HOLX has an excellent technical rating and 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 resistance zone just above the current price starting at 76.86. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 75.67, 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 NASDAQ:HOLX

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.