Exploring SYSCO CORP's Technical Signals and Breakout Potential.

Our stockscreener has identified a possible breakout setup on SYSCO CORP (NYSE:SYY). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:SYY for potential opportunities.

Technical analysis of NYSE:SYY

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall SYY gets a technical rating of 8 out of 10. Although SYY 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.
• SYY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so SYY is lagging the market slightly.
• When comparing the performance of all stocks over the past year, SYY turns out to be only a medium performer in the overall market: it outperformed 60% of all stocks.
• SYY is part of the Consumer Staples Distribution & Retail industry. There are 42 other stocks in this industry, SYY did better than 65% of them.
• In the last month SYY has a been trading in a tight range between 78.36 and 81.57.

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

How do we evaluate the setup for NYSE:SYY?

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 NYSE:SYY this score is currently 9:

Besides having an excellent technical rating, SYY 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 81.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 80.23, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.