Based on good technical signals, TEMPUR SEALY INTERNATIONAL I is potentially setting up for a breakout.

Our stock screener has spotted TEMPUR SEALY INTERNATIONAL I (NYSE:TPX) 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 NYSE:TPX.

Technical analysis of NYSE:TPX

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to TPX. Both in the recent history as in the last year, TPX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, TPX did better than 95% of all other stocks. On top of that, TPX also shows a nice and consistent pattern of rising prices.
• TPX is part of the Household Durables industry. There are 66 other stocks in this industry. TPX outperforms 76% of them.
• TPX is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so TPX is leading the market.
• In the last month TPX has a been trading in the 42.89 - 47.17 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.

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

How does the Setup look for NYSE:TPX

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:TPX exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, TPX 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 a resistance zone just above the current price starting at 46.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 45.61, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TPX in the last couple of days, which is a good sign.

Trading setups like NYSE:TPX

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.

More breakout setups can be found in our Breakout screener.

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.