NYSE:UNM may be ready to breakout.

UNUM GROUP (NYSE:UNM) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:UNM.

What is the technical picture of NYSE:UNM 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.

We assign a technical rating of 9 out of 10 to UNM. Both in the recent history as in the last year, UNM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, UNM did better than 97% of all other stocks. On top of that, UNM also shows a nice and consistent pattern of rising prices.
• UNM is one of the better performing stocks in the Insurance industry, it outperforms 99% of 137 stocks in the same industry.
• UNM 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 UNM is doing quite good in this market.
• In the last month UNM has a been trading in the 37.21 - 41.13 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

How do we evaluate the setup for NYSE:UNM?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:UNM currently has a 8 as setup rating:

Besides having an excellent technical rating, UNM also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 37.62, a Stop Loss order could be placed below this zone.

How can NYSE:UNM be traded?

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.

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 analyzer.