Will MARSH & MCLENNAN COS breakout?

MARSH & MCLENNAN COS (NYSE:MMC) 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:MMC.

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

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 10 out of 10 to MMC. Both in the recent history as in the last year, MMC 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 MMC is one of the better performing stocks in the market, outperforming 83% of all stocks. We also observe that the gains produced by MMC over the past year are nicely spread over this period.
• MMC is part of the Insurance industry. There are 149 other stocks in this industry. MMC outperforms 75% of them.
• MMC 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 MMC slightly outperforms the market at the moment.
• In the last month MMC has a been trading in the 163.56 - 175.12 range, which is quite wide. It is currently trading near the high of this range.

Looking at the Setup

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:MMC this score is currently 9:

MMC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 173.82. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 173.16, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:MMC

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:MMC 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.