TEMPUR SEALY INTERNATIONAL I (NYSE:TPX) Technical Analysis observations.

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

Insights from Technical Analysis

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

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

• The long and short term trends are both positive. This is looking good!
• TPX 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.
• In the last month TPX has a been trading in the 47.60 - 51.83 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that TPX is one of the better performing stocks in the market, outperforming 88% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• TPX is an average performer in the Household Durables industry, it outperforms 64% of 68 stocks in the same industry.

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

How do we evaluate the setup for NYSE:TPX?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:TPX this score is currently 9:

TPX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 51.79. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 51.35, 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.

How can NYSE:TPX be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

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.

More breakout setups can be found in our Breakout screener.

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.