Good technical signals and a possible breakout for SUNPOWER CORP.

A possible breakout setup was detected on SUNPOWER CORP (NASDAQ:SPWR) 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 NASDAQ:SPWR.

Technical analysis of NASDAQ:SPWR

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.

We assign a technical rating of 8 out of 10 to SPWR. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, SPWR is only an average performer.

• The long and short term trends are both positive. This is looking good!
• SPWR is one of the better performing stocks in the Electrical Equipment industry, it outperforms 94% of 86 stocks in the same industry.
• SPWR is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, SPWR did better than 97% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• SPWR 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 SPWR is still doing slightly better than the market.

How does the Setup look for NASDAQ:SPWR

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:SPWR this score is currently 8:

SPWR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 28.13. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for SPWR in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:SPWR?

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.

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.

More breakout setups can be found in our Breakout analyzer.