Technical Insights for BLOOMIN' BRANDS INC (NASDAQ:BLMN): Is a Breakout Imminent?

BLOOMIN' BRANDS INC (NASDAQ:BLMN) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:BLMN.

Insights from Technical Analysis

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.

We assign a technical rating of 7 out of 10 to BLMN. Although BLMN is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• BLMN 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 BLMN is lagging the market slightly.
• In the last month BLMN has a been trading in the 25.73 - 27.88 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, BLMN outperforms 54% of them, which is more or less in line with the market.
• BLMN is part of the Hotels, Restaurants & Leisure industry. There are 137 other stocks in this industry, BLMN did better than 62% of them.

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

How does the Setup look for NASDAQ:BLMN

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:BLMN this score is currently 10:

BLMN has an excellent technical rating and 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 27.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.55, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BLMN in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:BLMN

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.

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.