Based on good technical signals, HOLOGIC INC is potentially setting up for a breakout.

HOLOGIC INC (NASDAQ:HOLX) 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:HOLX.

Deciphering the Technical Picture of NASDAQ:HOLX

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of 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 and short term trends are both positive. This is looking good!
• When compared to the yearly performance of all other stocks, HOLX outperforms 41% of them, which is more or less in line with the market.
• HOLX is part of the Health Care Equipment & Supplies industry. There are 196 other stocks in this industry, HOLX did better than 64% 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?

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 NASDAQ:HOLX this score is currently 9:

Besides having an excellent technical rating, HOLX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 76.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 75.79, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:HOLX?

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill 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.