Envista Holdings Corp (NYSE:NVST) Shows Strong Technical and Setup Ratings for Breakout Potential

Envista Holdings Corp (NYSE:NVST) has become a possible choice for technical investors using a breakout screening method. The strategy uses two ChartMill indicators, the Technical Rating and Setup Quality Rating, to find stocks with both good technical health and promising consolidation patterns. This two-step filter helps traders spot chances where a stock’s strength matches a clear entry point, lowering the risk of entering during weak trends or chasing overextended moves.

Technical Strength: A Strong Base

Envista Holdings currently has a Technical Rating of 7, showing a steady uptrend with potential for more growth. Key factors behind this score include:

• Trend Consistency: The long-term trend stays positive, while the short-term trend has recently leveled off, hinting at a possible pause before continuing upward.
• Relative Strength: NVST performs better than 81% of its peers in the Health Care Equipment & Supplies industry and 79% of all stocks in the market over the past year, showing lasting demand.
• Moving Averages: The stock trades above all major moving averages (20-day, 50-day, 100-day, and 200-day), with each rising—a typical sign of bullish alignment.

The Technical Rating’s focus on trends across multiple timeframes and relative performance ensures that stocks like NVST are not just lifted by short-term market sentiment but show lasting strength. For more details on the technicals, see the full technical report here.

Setup Quality: A Tight Consolidation Pattern

With a Setup Rating of 9—close to the top score of 10—NVST shows a high-probability consolidation pattern. This rating highlights:

• Price Compression: The stock has moved between $18.77 and $21.15 over the past month, with recent activity narrowing near the middle, suggesting lower volatility and potential for a breakout.
• Support and Resistance: A clear support area lies between $19.23 and $19.58 (backed by moving averages and trendlines), while resistance sits at $20.59–$20.77. A breakout above resistance could signal the next upward move.
• Institutional Interest: Large investors have shown more activity in NVST lately, as measured by the Effective Volume indicator, adding weight to the setup.

The Setup Rating’s focus on consolidation areas and key levels helps traders find low-risk entry points. For NVST, a move above $20.78 (just above resistance) could act as a trigger, with a stop-loss placed below $19.22 to limit downside risk.

Why This Pairing Works

The link between a high Technical Rating and Setup Rating is key to the breakout strategy. A strong Technical Rating confirms the stock’s momentum, while a high Setup Rating ensures the trade starts at a good point—not after a big run-up. NVST’s mix of strong relative strength in its sector and a tight price structure makes it a noteworthy watchlist option for technical traders.

For investors looking for similar opportunities, the Technical Breakout Setups screen updates daily with new ideas, filtering for stocks that meet these criteria.

Disclaimer: This analysis is not investment advice. Always do your own research and consider risk management strategies before trading.