NASDAQ:HOLX may be ready to breakout.

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.

What is the technical picture of NASDAQ:HOLX telling us.

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 9 out of 10 to HOLX. Both in the recent history as in the last year, HOLX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that HOLX is one of the better performing stocks in the market, outperforming 74% of all stocks.
• HOLX 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 HOLX is lagging the market slightly.
• In the last month HOLX has a been trading in the 75.62 - 81.04 range, which is quite wide. It is currently trading near the high of this range.
• HOLX is an average performer in the Health Care Equipment & Supplies industry, it outperforms 64% of 202 stocks in the same industry.

How does the Setup look for NASDAQ:HOLX

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:HOLX scores a 8 out of 10:

Besides having an excellent technical rating, HOLX 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 very little resistance above the current price. There is a support zone below the current price at 79.98, a stop order could be placed below this zone. We notice that large players showed an interest for HOLX in the last couple of days, which is a good sign.

How to trade NASDAQ:HOLX?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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