Vertiv Holdings Llc. is setting up nicely for a breakout.

Vertiv Holdings Llc. (NYSE:VRT) 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:VRT.

Zooming in on the technicals.

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.

We assign a technical rating of 10 out of 10 to VRT. Both in the recent history as in the last year, VRT 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!
• When comparing the yearly performance of all stocks, we notice that VRT is one of the better performing stocks in the market, outperforming 89% of all stocks. On top of that, VRT also shows a nice and consistent pattern of rising prices.
• VRT is part of the Electrical Equipment industry. There are 62 other stocks in this industry. VRT outperforms 79% of them.
• VRT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month VRT has a been trading in the 26.04 - 27.81 range, which is quite wide. It is currently trading near the high of this range.

Why is NYSE:VRT a 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:VRT scores a 9 out of 10:

VRT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 27.67. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.12, a stop order could be placed below this zone. We notice that large players showed an interest for VRT in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

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