Based on good technical signals, AMERICAN HOMES 4 RENT- A (NYSE:AMH) is potentially setting up for a breakout.

Our stock screener has spotted AMERICAN HOMES 4 RENT- A (NYSE:AMH) 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:AMH.

What is the technical picture of AMH telling us.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 7 out of 10 to AMH. AMH has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• In the last month AMH has a been trading in the 34.39 - 38.06 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, AMH outperforms 69% of them, which is more or less in line with the market.
• AMH is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

For an up to date full technical analysis you can check the technical report of AMH

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, AMH has a 7 as its setup rating, indicating its current consolidation status.

AMH 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 a resistance zone just above the current price starting at 37.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.45, a Stop Loss order could be placed below this zone.

Trading setups like AMH

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

More breakout setups can be found in our Breakout screener.

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.