NYSE:UNM may be ready to breakout.

A possible breakout setup was detected on UNUM GROUP (NYSE:UNM) 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 NYSE:UNM.

Technical analysis of NYSE:UNM

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. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, UNM is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that UNM is one of the better performing stocks in the market, outperforming 97% of all 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 98% of 136 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.

Looking at the Setup

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:UNM this score is currently 8:

UNM has an excellent technical rating and 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 37.61, a Stop Loss order could be placed below this zone.

Trading breakout setups.

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.

Our Breakout analyzer lists more breakout setups and is updated daily.