Will PURE STORAGE INC - CLASS A Break Out? A Technical Analysis Perspective.

Our stock screener has identified PURE STORAGE INC - CLASS A (NYSE:PSTG) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:PSTG.

Deciphering the Technical Picture of NYSE:PSTG

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall PSTG gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, PSTG is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that PSTG is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, PSTG also shows a nice and consistent pattern of rising prices.
• PSTG is part of the Technology Hardware, Storage & Peripherals industry. There are 32 other stocks in this industry. PSTG outperforms 87% of them.
• PSTG 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 PSTG is lagging the market slightly.
• In the last month PSTG has a been trading in the 48.89 - 55.09 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of PSTG

How does the Setup look for NYSE:PSTG

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:PSTG is 9:

Besides having an excellent technical rating, PSTG also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 53.12, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for PSTG in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:PSTG 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.

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 screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.