NYSE:MMC may be ready to breakout.

A possible breakout setup was detected on MARSH & MCLENNAN COS (NYSE:MMC) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:MMC.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall MMC gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MMC is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that MMC is one of the better performing stocks in the market, outperforming 84% of all stocks. On top of that, MMC also shows a nice and consistent pattern of rising prices.
• MMC is part of the Insurance industry. There are 148 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 164.55 - 175.99 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.

How does the Setup look for NYSE:MMC

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:MMC scores a 9 out of 10:

Besides having an excellent technical rating, MMC 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 174.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 173.91, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:MMC?

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.

More breakout setups can be found in our Breakout analyzer.