STARWOOD PROPERTY TRUST INC (NYSE:STWD) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of solid technical strength and a well-defined setup pattern, making it worth a closer look for traders focused on momentum opportunities.
Technical Strength
STWD currently holds a Technical Rating of 8, indicating a favorable trend structure. Key points supporting this rating include:
- The long-term trend remains positive, while the short-term trend has been neutral, suggesting consolidation before a potential move higher.
- The stock is outperforming 93% of its peers in the Mortgage REITs industry, reflecting relative strength.
- It trades above key moving averages (20-day, 50-day, 100-day, and 200-day), reinforcing bullish momentum.
- Recent volume trends show healthy liquidity, with an average of 2.26 million shares traded daily.
Setup Quality
With a Setup Rating of 9, STWD presents a well-defined consolidation pattern:
- Prices have been range-bound between $19.46 and $20.49 over the past month, forming a base.
- A recent Pocket Pivot signal suggests accumulation, often a precursor to upward movement.
- Support is established near $19.81, providing a logical stop-loss level for traders.
- Resistance lies between $20.13 and $20.32, with a breakout above $20.50 potentially signaling further upside.
The combination of a strong technical backdrop and a tight consolidation phase makes STWD a candidate for a breakout strategy.
For a deeper analysis, review the full technical report for STWD.
Our Technical Breakout Setups screener updates daily with new potential opportunities.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before trading.
