Will REGIONS FINANCIAL CORP breakout?

A possible breakout setup was detected on REGIONS FINANCIAL CORP (NYSE:RF) 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 NYSE:RF.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall RF gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, RF is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• RF is part of the Banks industry. There are 311 other stocks in this industry. RF outperforms 81% of them.
• When comparing the yearly performance of all stocks, we notice that RF is one of the better performing stocks in the market, outperforming 90% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• RF is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so RF is still doing slightly better than the market.
• In the last month RF has a been trading in the 20.82 - 22.80 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Looking at the Setup

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:RF currently has a 8 as setup rating:

Besides having an excellent technical rating, RF also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 21.83, a Stop Loss order could be placed below this zone.

Trading breakout setups.

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.

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