NASDAQ:LPLA may be ready to breakout.

Our stock screener has spotted LPL Financial Holdings Inc (NASDAQ:LPLA) 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 NASDAQ:LPLA.

Zooming in on the technicals.

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.

We assign a technical rating of 8 out of 10 to LPLA. Both in the recent history as in the last year, LPLA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, LPLA did better than 96% of all other stocks. On top of that, LPLA also shows a nice and consistent pattern of rising prices.
• LPLA is part of the Capital Markets industry. There are 208 other stocks in this industry. LPLA outperforms 98% of them.
• In the last month LPLA has a been trading in the 177.26 - 204.37 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.
• LPLA is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so LPLA is still doing slightly better than the market.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:LPLA currently has a 8 as setup rating:

Besides having an excellent technical rating, LPLA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 191.14, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:LPLA

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.

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