Good technical signals and a possible breakout for TRIP.COM GROUP LTD-ADR.

Our stock screener has spotted TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:TCOM.

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

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 7 out of 10 to TCOM. In the last year, TCOM was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, TCOM did better than 96% of all other stocks. We also observe that the gains produced by TCOM over the past year are nicely spread over this period.
• TCOM is part of the Hotels, Restaurants & Leisure industry. There are 143 other stocks in this industry. TCOM outperforms 93% of them.
• TCOM is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so TCOM slightly outperforms the market at the moment.
• In the last month TCOM has a been trading in the 34.39 - 39.53 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Why is NASDAQ:TCOM a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:TCOM currently has a 8 as setup rating:

TCOM has an excellent technical rating and 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 37.6. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.21, a Stop Loss order could be placed below this zone.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

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