Good technical signals and a possible breakout for Medical Properties Trust.

Our stock screener has spotted Medical Properties Trust (NYSE:MPW) 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:MPW.

What is the technical picture of NYSE:MPW 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.

Taking everything into account, MPW scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MPW is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• When compared to the yearly performance of all other stocks, MPW outperforms 56% of them, which is more or less in line with the market.
• MPW is part of the Equity Real Estate Investment Trusts (REITs) industry. There are 225 other stocks in this industry, MPW did better than 45% of them.
• MPW is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so MPW is lagging the market.
• In the last month MPW has a been trading in a tight range between 20.81 and 21.86.

Why is NYSE:MPW a setup?

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:MPW scores a 9 out of 10:

MPW 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 21.76. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 21.03, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:MPW 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.

Of course, there are many ways to trade or not trade NYSE:MPW 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.