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

Our stock screener has detected a potential breakout setup on PURE STORAGE INC - CLASS A (NYSE:PSTG). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:PSTG.

In-Depth Technical Analysis of NYSE:PSTG

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 10 out of 10 to PSTG. Both in the recent history as in the last year, PSTG has proven to be a steady performer, scoring decent points in every aspect analyzed.

• 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 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 is also trading in the upper part of its 52 week range, so PSTG is performing more or less in line with the market.
• In the last month PSTG has a been trading in the 48.89 - 55.09 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of PSTG contains the most current technical analsysis.

Why is NYSE:PSTG a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:PSTG currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

PSTG has an excellent technical rating and 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 49.77, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Disclaimer

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.