Weyerhaeuser Company is setting up nicely for a breakout.

Weyerhaeuser Company (NYSE:WY) 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:WY.

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.

Taking everything into account, WY scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, WY 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.
• When comparing the yearly performance of all stocks, we notice that WY is one of the better performing stocks in the market, outperforming 76% of all stocks. We also observe that the gains produced by WY over the past year are nicely spread over this period.
• WY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so WY is lagging the market slightly.
• In the last month WY has a been trading in the 35.52 - 39.31 range, which is quite wide. It is currently trading near the high of this range.
• WY is an average performer in the Equity Real Estate Investment Trusts (REITs) industry, it outperforms 68% of 225 stocks in the same industry.

How do we evaluate the setup for NYSE:WY?

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:WY scores a 9 out of 10:

WY 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. There is very little resistance above the current price. There is a support zone below the current price at 38.64, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:WY

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.

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