Exploring ARAMARK's Technical Signals and Breakout Potential.

Our stock screener has spotted ARAMARK (NYSE:ARMK) 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:ARMK.

Technical analysis of NYSE:ARMK

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall ARMK gets a technical rating of 8 out of 10. Both in the recent history as in the last year, ARMK has proven to be a steady performer, scoring decent points in every aspect analyzed.

• 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.
• When comparing the yearly performance of all stocks, we notice that ARMK is one of the better performing stocks in the market, outperforming 74% of all stocks. We also observe that the gains produced by ARMK over the past year are nicely spread over this period.
• ARMK 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.
• ARMK is part of the Hotels, Restaurants & Leisure industry. There are 135 other stocks in this industry, ARMK did better than 62% of them.
• In the last month ARMK has a been trading in the 37.54 - 39.99 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of ARMK for a complete technical analysis.

How do we evaluate the setup for NYSE:ARMK?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:ARMK currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

ARMK has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 39.49. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.66, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ARMK in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:ARMK?

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.

Of course, there are many ways to trade or not trade NYSE:ARMK 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.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.