Technical Setup: ARM HOLDINGS PLC-ADR Appears Poised for a Breakout.

A possible breakout setup was detected on ARM HOLDINGS PLC-ADR (NASDAQ:ARM) 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:ARM.

Analyzing the Technical Aspects

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, ARM scores 10 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, ARM is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, ARM did better than 97% of all other stocks. On top of that, ARM also shows a nice and consistent pattern of rising prices.
• ARM is part of the Semiconductors & Semiconductor Equipment industry. There are 109 other stocks in this industry. ARM outperforms 95% of them.
• ARM is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so ARM is lagging the market.
• In the last month ARM has a been trading in the 132.80 - 152.39 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 ARM contains the most current technical analsysis.

Looking at the Setup

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:ARM this score is currently 9:

Besides having an excellent technical rating, ARM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 148.44. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 142.71, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ARM in the last couple of days, which is a good sign.

How can NASDAQ:ARM be traded?

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.

Of course, there are many ways to trade or not trade NASDAQ:ARM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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

Disclaimer

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.