Based on good technical signals, ALLY FINANCIAL INC is potentially setting up for a breakout.

ALLY FINANCIAL INC (NYSE:ALLY) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:ALLY.

Deciphering the Technical Picture of NYSE:ALLY

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

Taking everything into account, ALLY scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, ALLY is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, ALLY did better than 91% of all other stocks.
• ALLY is one of the better performing stocks in the Consumer Finance industry, it outperforms 84% of 52 stocks in the same industry.
• ALLY 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 ALLY is lagging the market slightly.
• In the last month ALLY has a been trading in the 37.70 - 41.13 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 ALLY contains the most current technical analsysis.

How do we evaluate the setup for NYSE:ALLY?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:ALLY is 9:

Besides having an excellent technical rating, ALLY also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 40.53. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 39.86, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:ALLY?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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

Keep in mind

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.