NASDAQ:XLNX may be ready to breakout.

A possible breakout setup was detected on Xilinx Inc (NASDAQ:XLNX) 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:XLNX.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

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

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, XLNX did better than 80% of all other stocks.
• XLNX is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• XLNX is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• XLNX is an average performer in the Semiconductors & Semiconductor Equipment industry, it outperforms 42% of 105 stocks in the same industry.

How do we evaluate the setup for NASDAQ:XLNX?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:XLNX this score is currently 8:

Besides having an excellent technical rating, XLNX also presents a decent setup pattern. Prices have been consolidating lately. 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 156.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 152.26, a stop order could be placed below this zone.

How to trade NASDAQ:XLNX?

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.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.