Technical Signals Point to a Possible Breakout for VERTEX PHARMACEUTICALS INC (NASDAQ:VRTX).

A possible breakout setup was detected on VERTEX PHARMACEUTICALS INC (NASDAQ:VRTX) 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 NASDAQ:VRTX.

Deciphering the Technical Picture of VRTX

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• VRTX is one of the better performing stocks in the Biotechnology industry, it outperforms 88% of 569 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.
• Looking at the yearly performance, VRTX did better than 90% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month VRTX has a been trading in the 477.73 - 519.68 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 VRTX contains the most current technical analsysis.

Why is VRTX a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, VRTX has a 8 as its setup rating, indicating its current consolidation status.

VRTX 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. There is a resistance zone just above the current price starting at 516.74. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 492.68, a Stop Loss order could be placed below this zone.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.