Is AVANTOR INC Ready to Break Out of Its Range?

A possible breakout setup was detected on AVANTOR INC (NYSE:AVTR) 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 NYSE:AVTR.

Deciphering the Technical Picture of NYSE:AVTR

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, AVTR scores 7 out of 10 in our technical rating. Although AVTR is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• AVTR is part of the Life Sciences Tools & Services industry. There are 57 other stocks in this industry. AVTR outperforms 76% of them.
• AVTR 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 AVTR is lagging the market slightly.
• In the last month AVTR has a been trading in the 24.19 - 28.00 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When compared to the yearly performance of all other stocks, AVTR outperforms 68% of them, which is more or less in line with the market.

Our latest full technical report of AVTR contains the most current technical analsysis.

How do we evaluate the setup for NYSE:AVTR?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:AVTR currently has a 8 as setup rating:

AVTR has an excellent technical rating and 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 very little resistance above the current price. There is a support zone below the current price at 25.36, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AVTR in the last couple of days, which is a good sign.

How to trade NYSE:AVTR?

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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.