Good technical signals and a possible breakout for SIGNIFY HEALTH INC -CLASS A.

A possible breakout setup was detected on SIGNIFY HEALTH INC -CLASS A (NYSE:SGFY) 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:SGFY.

Technical Analysis Observations

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

We assign a technical rating of 8 out of 10 to SGFY. Although SGFY is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• SGFY is part of the Health Care Providers & Services industry. There are 128 other stocks in this industry. SGFY outperforms 98% of them.
• SGFY is currently trading near its 52 week high. This is a good sign, definitely because the S&P500 Index is trading in the lower area of its yearly range.
• In the last month SGFY has a been trading in the 27.36 - 29.43 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, SGFY did better than 99% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• Volume is considerably higher in the last couple of days.

Looking at the 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. NYSE:SGFY scores a 7 out of 10:

Besides having an excellent technical rating, SGFY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 29.07, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:SGFY 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.

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