There are signs that TYSON FOODS INC-CL A (NYSE:TSN) may be ready to breakout.

Our stock screener has detected a potential breakout setup on TYSON FOODS INC-CL A (NYSE:TSN). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:TSN.

Insights from Technical Analysis

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall TSN gets a technical rating of 7 out of 10. Although TSN is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• TSN is one of the better performing stocks in the Food Products industry, it outperforms 74% of 91 stocks in the same industry.
• When comparing the yearly performance of all stocks, we notice that TSN is one of the better performing stocks in the market, outperforming 70% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• TSN is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month TSN has a been trading in the 56.50 - 62.90 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of TSN contains the most current technical analsysis.

Looking at the Setup

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 TSN is 7:

TSN 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. A pullback is taking place, which may present a nice opportunity for an entry. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.