WR BERKLEY CORP is setting up nicely for a breakout.

Our stock screener has spotted WR BERKLEY CORP (NYSE:WRB) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:WRB.

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

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to WRB. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, WRB 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 WRB is one of the better performing stocks in the market, outperforming 93% of all stocks.
• WRB is one of the better performing stocks in the Insurance industry, it outperforms 97% of 143 stocks in the same industry.
• WRB is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• In the last month WRB has a been trading in the 65.10 - 71.53 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
• Volume is considerably higher in the last couple of days.

How do we evaluate the setup for NYSE:WRB?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:WRB currently has a 9 as setup rating:

Besides having an excellent technical rating, WRB also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 66.49, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for WRB in the last couple of days, which is a good sign.

How can NYSE:WRB be traded?

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.

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