HOWMET AEROSPACE INC is setting up nicely for a breakout.

Our stock screener has spotted HOWMET AEROSPACE INC (NYSE:HWM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:HWM.

What is the technical picture of NYSE:HWM telling us.

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 10 out of 10 to HWM. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, HWM is showing a nice and steady performance.

• 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 HWM is one of the better performing stocks in the market, outperforming 89% of all stocks. On top of that, HWM also shows a nice and consistent pattern of rising prices.
• HWM is part of the Aerospace & Defense industry. There are 67 other stocks in this industry. HWM outperforms 71% of them.
• HWM is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month HWM has a been trading in the 38.30 - 41.10 range, which is quite wide. It is currently trading near the high of this range.

How does the Setup look for NYSE:HWM

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:HWM this score is currently 9:

HWM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 40.75. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 40.01, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for HWM in the last couple of days, which is a good sign.

How can NYSE:HWM be traded?

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.