Good technical signals and a possible breakout for MANULIFE FINANCIAL CORP.

MANULIFE FINANCIAL CORP (NYSE:MFC) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:MFC.

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

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.

Overall MFC gets a technical rating of 8 out of 10. Although MFC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• MFC is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so MFC slightly outperforms the market at the moment.
• In the last month MFC has a been trading in the 19.10 - 20.40 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that MFC is one of the better performing stocks in the market, outperforming 80% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• MFC is an average performer in the Insurance industry, it outperforms 59% of 137 stocks in the same industry.

Why is NYSE:MFC a 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. NYSE:MFC currently has a 9 as setup rating:

MFC has an excellent technical rating and 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 20.17. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.04, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:MFC be traded?

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.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.