Will TRUIST FINANCIAL CORP breakout?

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

Deciphering the Technical Picture of NYSE:TFC

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• TFC 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 compared to the yearly performance of all other stocks, TFC outperforms 61% of them, which is more or less in line with the market.
• TFC is part of the Banks industry. There are 414 other stocks in this industry, TFC did better than 53% of them.
• TFC is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so TFC is lagging the market.

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

How do we evaluate the setup for NYSE:TFC?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:TFC currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

TFC 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 37.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 35.85, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TFC in the last couple of days, which is a good sign.

Trading setups like NYSE:TFC

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.

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.