INGERSOLL-RAND INC is showing promising signs of setting up for a breakout.

Our stock screener has flagged INGERSOLL-RAND INC (NYSE:IR) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:IR for potential movement.

Insights from Technical Analysis

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 8 out of 10 to IR. In the last year, IR was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that IR is one of the better performing stocks in the market, outperforming 88% of all stocks. On top of that, IR also shows a nice and consistent pattern of rising prices.
• IR is part of the Machinery industry. There are 132 other stocks in this industry. IR outperforms 77% of them.
• IR 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 IR is lagging the market slightly.
• In the last month IR has a been trading in the 85.90 - 94.27 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.
• Volume is considerably higher in the last couple of days.

Check the latest full technical report of IR for a complete technical analysis.

Why is NYSE:IR a setup?

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. NYSE:IR scores a 9 out of 10:

Besides having an excellent technical rating, IR also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 94.95. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 87.54, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for IR in the last couple of days, which is a good sign.

How to trade NYSE:IR?

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.

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.

More breakout setups can be found 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.