NASDAQ:TCOM may be ready to breakout.

TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:TCOM.

What is the technical picture of NASDAQ:TCOM telling us.

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

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

• The long and short term trends are both positive. This is looking good!
• TCOM is part of the Hotels, Restaurants & Leisure industry. There are 141 other stocks in this industry. TCOM outperforms 95% of them.
• TCOM is currently making a new 52 week high. This is a strong signal, certainly because the S&P500 Index is not trading near new highs.
• TCOM 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.
• When comparing the yearly performance of all stocks, we notice that TCOM is one of the better performing stocks in the market, outperforming 97% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Why is NASDAQ:TCOM a setup?

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:TCOM this score is currently 8:

Besides having an excellent technical rating, TCOM also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 38.34. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.52, a Stop Loss order could be placed below this zone.

Trading breakout setups.

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.

Of course, there are many ways to trade or not trade NASDAQ:TCOM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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