Good technical signals and a possible breakout for Pentair Ltd.

Our stock screener has spotted Pentair Ltd (NYSE:PNR) 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:PNR.

Zooming in on the technicals.

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

Overall PNR gets a technical rating of 8 out of 10. In the last year, PNR was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, PNR did better than 84% of all other stocks. On top of that, PNR also shows a nice and consistent pattern of rising prices.
• PNR is one of the better performing stocks in the Machinery industry, it outperforms 83% of 144 stocks in the same industry.
• PNR 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 PNR is lagging the market slightly.
• PNR is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

How does the Setup look for NYSE:PNR

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:PNR currently has a 8 as setup rating:

PNR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 76.52, a stop order could be placed below this zone.

Trading setups like NYSE:PNR

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.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.