VERTEX PHARMACEUTICALS INC (NASDAQ:VRTX) is showing promising signs of setting up for a breakout.

We've identified VERTEX PHARMACEUTICALS INC (NASDAQ:VRTX) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:VRTX for further developments.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 9 out of 10 to VRTX. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, VRTX is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• VRTX is one of the better performing stocks in the Biotechnology industry, it outperforms 85% of 572 stocks in the same industry.
• VRTX is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so VRTX slightly outperforms the market at the moment.
• In the last month VRTX has a been trading in the 446.00 - 503.89 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that VRTX is one of the better performing stocks in the market, outperforming 87% of all stocks. However, this overall performance is mostly based on the strong move around 10 months ago.

For an up to date full technical analysis you can check the technical report of VRTX

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:VRTX currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

VRTX 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 505.78. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 485.69, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:VRTX be traded?

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.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.