Technical Setup: ICICI BANK LTD-SPON ADR Appears Poised for a Breakout.

ICICI BANK LTD-SPON ADR (NYSE:IBN) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:IBN.

Analyzing the Technical Aspects

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

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that IBN is one of the better performing stocks in the market, outperforming 75% of all stocks. We also observe that the gains produced by IBN over the past year are nicely spread over this period.
• IBN is one of the better performing stocks in the Banks industry, it outperforms 79% of 416 stocks in the same industry.
• IBN 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 IBN is lagging the market slightly.
• In the last month IBN has a been trading in the 23.16 - 24.89 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of IBN contains the most current technical analsysis.

How do we evaluate the setup for NYSE:IBN?

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:IBN currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

IBN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 24.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.99, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for IBN in the last couple of days, which is a good sign.

How can NYSE:IBN be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

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.

More breakout setups can be found in our Breakout screener.

Keep in mind

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.