There are signs that NYSE:SIX may be ready to breakout.

A possible breakout setup was detected on SIX FLAGS ENTERTAINMENT CORP (NYSE:SIX) 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:SIX.

Deciphering the Technical Picture of NYSE:SIX

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• In the last month SIX has a been trading in the 22.73 - 25.46 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, SIX outperforms 66% of them, which is more or less in line with the market.
• SIX is an average performer in the Hotels, Restaurants & Leisure industry, it outperforms 63% of 137 stocks in the same industry.
• SIX is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so SIX is lagging the market.

Check the latest full technical report of SIX for a complete technical analysis.

Why is NYSE:SIX 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:SIX currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, SIX also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 24.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 24.62, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:SIX?

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.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.