NASDAQ:NXPI may be ready to breakout.

Nxp Semiconductors (NASDAQ:NXPI) 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 NASDAQ:NXPI.

Zooming in on the technicals.

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, NXPI scores 7 out of 10 in our technical rating. In the last year, NXPI was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that NXPI is one of the better performing stocks in the market, outperforming 82% of all stocks. On top of that, NXPI also shows a nice and consistent pattern of rising prices.
• NXPI is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so NXPI is lagging the market slightly.
• In the last month NXPI has a been trading in the 199.61 - 228.72 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• NXPI is part of the Semiconductors & Semiconductor Equipment industry. There are 105 other stocks in this industry, NXPI did better than 45% of them.

Why is NASDAQ:NXPI 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. NASDAQ:NXPI scores a 8 out of 10:

Besides having an excellent technical rating, NXPI also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 210.29, a stop order could be placed below this zone.

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.

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.