Good technical signals and a possible breakout for IHS Markit Ltd.

A possible breakout setup was detected on IHS Markit Ltd (NYSE:INFO) 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 NYSE:INFO.

Technical analysis of NYSE:INFO

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall INFO gets a technical rating of 10 out of 10. Both in the recent history as in the last year, INFO 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!
• Looking at the yearly performance, INFO did better than 78% of all other stocks. On top of that, INFO also shows a nice and consistent pattern of rising prices.
• INFO is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month INFO has a been trading in the 122.71 - 132.35 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• INFO is part of the Professional Services industry. There are 80 other stocks in this industry, INFO did better than 62% of them.

How do we evaluate the setup for NYSE:INFO?

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:INFO this score is currently 9:

Besides having an excellent technical rating, INFO also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. 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 130.72. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 127.78, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:INFO 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.

Of course, there are many ways to trade or not trade NYSE:INFO and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.