PACCAR INC is setting up nicely for a breakout.

A possible breakout setup was detected on PACCAR INC (NASDAQ:PCAR) 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 NASDAQ:PCAR.

What is the technical picture of NASDAQ:PCAR telling us.

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 PCAR gets a technical rating of 7 out of 10. PCAR has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• In the last month PCAR has a been trading in the 85.44 - 91.96 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.
• When comparing the performance of all stocks over the past year, PCAR turns out to be only a medium performer in the overall market: it outperformed 47% of all stocks.
• PCAR is part of the Machinery industry. There are 142 other stocks in this industry, PCAR did better than 40% of them.
• PCAR is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so PCAR is lagging the market.

How does the Setup look for NASDAQ:PCAR

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:PCAR scores a 8 out of 10:

Besides having an excellent technical rating, PCAR 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 a resistance zone just above the current price starting at 88.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 87.04, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:PCAR be traded?

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 NASDAQ:PCAR 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.