MARSH & MCLENNAN COS is setting up nicely for a breakout.

Our stock screener has spotted MARSH & MCLENNAN COS (NYSE:MMC) 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 NYSE:MMC.

Technical analysis of NYSE:MMC

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 MMC gets a technical rating of 9 out of 10. 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!
• Looking at the yearly performance, MMC did better than 83% of all other stocks. We also observe that the gains produced by MMC over the past year are nicely spread over this period.
• MMC is one of the better performing stocks in the Insurance industry, it outperforms 71% of 147 stocks in the same industry.
• 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 163.63 - 175.12 range, which is quite wide. It is currently trading near the high of this range.

How does the Setup look for NYSE:MMC

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. We see reduced volatility while prices have been consolidating in the most recent period. 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. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

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.