TRACTOR SUPPLY COMPANY is setting up nicely for a breakout.

A possible breakout setup was detected on TRACTOR SUPPLY COMPANY (NASDAQ:TSCO) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:TSCO.

What is the technical picture of NASDAQ:TSCO telling us.

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.

Taking everything into account, TSCO scores 7 out of 10 in our technical rating. Although TSCO is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• TSCO is one of the better performing stocks in the Specialty Retail industry, it outperforms 70% of 117 stocks in the same industry.
• TSCO is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• Looking at the yearly performance, TSCO did better than 84% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month TSCO has a been trading in a tight range between 223.70 and 236.81.

How does the Setup look for NASDAQ:TSCO

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 NASDAQ:TSCO this score is currently 9:

Besides having an excellent technical rating, TSCO 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 238.6. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 231.63, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TSCO in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:TSCO?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NASDAQ:TSCO 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.