TRIP.COM GROUP LTD-ADR is setting up nicely for a breakout.

A possible breakout setup was detected on TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) 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:TCOM.

Technical Analysis Observations

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 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 short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, TCOM did better than 94% of all other stocks. On top of that, TCOM also shows a nice and consistent pattern of rising prices.
• TCOM is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 86% of 146 stocks in the same industry.
• 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 34.90 - 39.53 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

How does the Setup look for NASDAQ:TCOM

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:

Besides having an excellent technical rating, TCOM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 34.79, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TCOM in the last couple of days, which is a good sign.

How can NASDAQ:TCOM be traded?

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.

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.