Technical Insights for QIFU TECHNOLOGY INC (NASDAQ:QFIN): Is a Breakout Imminent?

Our stock screener has spotted QIFU TECHNOLOGY INC (NASDAQ:QFIN) 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 NASDAQ:QFIN.

Deciphering the Technical Picture of NASDAQ:QFIN

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.

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

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that QFIN is one of the better performing stocks in the market, outperforming 97% of all stocks. We also observe that the gains produced by QFIN over the past year are nicely spread over this period.
• QFIN is part of the Consumer Finance industry. There are 53 other stocks in this industry. QFIN outperforms 92% of them.
• QFIN is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month QFIN has a been trading in the 36.45 - 44.00 range, which is quite wide. It is currently trading near the high of this range.

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

Why is NASDAQ:QFIN 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:QFIN scores a 9 out of 10:

Besides having an excellent technical rating, QFIN also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 40.08, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:QFIN

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.

Of course, there are many ways to trade or not trade NASDAQ:QFIN 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.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice. 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.