Exploring TERADYNE INC's Technical Signals and Breakout Potential.

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

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

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 9 out of 10 to TER. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, TER is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• TER is part of the Semiconductors & Semiconductor Equipment industry. There are 108 other stocks in this industry. TER outperforms 79% of them.
• TER is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When comparing the yearly performance of all stocks, we notice that TER is one of the better performing stocks in the market, outperforming 92% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month TER has a been trading in the 135.96 - 152.23 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of TER

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:TER has a 9 as its setup rating, indicating its current consolidation status.

TER has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 140.89, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:TER?

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:TER 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.

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

Disclaimer

This article should in no way be interpreted as advice. 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.