Good technical signals and a possible breakout for TURQUOISE HILL RESOURCES LTD.

Our stock screener has spotted TURQUOISE HILL RESOURCES LTD (NYSE:TRQ) 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:TRQ.

Technical Analysis Observations

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

Overall TRQ gets a technical rating of 9 out of 10. Both in the recent history as in the last year, TRQ 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, TRQ did better than 99% of all other stocks.
• TRQ is part of the Metals & Mining industry. There are 961 other stocks in this industry. TRQ outperforms 98% of them.
• TRQ is currently trading in the upper part of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So TRQ is doing quite good in this market.
• In the last month TRQ has a been trading in the 26.88 - 32.09 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:TRQ scores a 7 out of 10:

Although TRQ has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Trading setups like NYSE:TRQ

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 NYSE:TRQ 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.

More breakout setups can be found in our Breakout analyzer.