Indications Suggest T-MOBILE US INC (NASDAQ:TMUS) Could Be on the Verge of a Breakout.

T-MOBILE US INC (NASDAQ:TMUS) 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:TMUS.

Zooming in on the technicals.

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.

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

• 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, TMUS did better than 96% of all other stocks. We also observe that the gains produced by TMUS over the past year are nicely spread over this period.
• TMUS is part of the Wireless Telecommunication Services industry. There are 21 other stocks in this industry. TMUS outperforms 90% of them.
• TMUS 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 TMUS slightly outperforms the market at the moment.
• In the last month TMUS has a been trading in the 238.65 - 272.60 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.
• Volume is considerably higher in the last couple of days.

Check the latest full technical report of TMUS for a complete technical analysis.

How do we evaluate the setup for TMUS?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for TMUS is 8:

TMUS 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 270.81. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 251.39, a Stop Loss order could be placed below this zone.

How to trade TMUS?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.