Will WP Carey Inc breakout?

WP Carey Inc (NYSE:WPC) 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:WPC.

What is the technical picture of NYSE:WPC telling us.

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.

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

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that WPC is one of the better performing stocks in the market, outperforming 94% of all stocks.
• WPC is one of the better performing stocks in the Equity Real Estate Investment Trusts (REITs) industry, it outperforms 97% of 224 stocks in the same industry.
• A new 52 week high is currently being made by WPC, which is a very good signal! Especially since the S&P500 is only trading in the lower part of its 52 week range, so WPC is leading the market.
• In the last month WPC has a been trading in the 79.89 - 87.43 range, which is quite wide. It is currently trading near the high of this range.

Looking at the 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:WPC scores a 8 out of 10:

Besides having an excellent technical rating, WPC also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 86.13. Right above this resistance zone may be a good entry point.

Trading setups like NYSE:WPC

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.

Of course, there are many ways to trade or not trade NYSE:WPC 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 analyzer lists more breakout setups and is updated daily.