Interesting Technical Analysis finding for BOX INC - CLASS A (NYSE:BOX)

Our stock screener has detected a potential breakout setup on BOX INC - CLASS A (NYSE:BOX). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:BOX.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to BOX. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, BOX did better than 76% of all other stocks. We also observe that the gains produced by BOX over the past year are nicely spread over this period.
• BOX 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 BOX is lagging the market slightly.
• BOX is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• BOX is an average performer in the Software industry, it outperforms 64% of 282 stocks in the same industry.
• In the last month BOX has a been trading in a tight range between 31.49 and 33.17.

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

Why is NYSE:BOX a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:BOX is 9:

BOX 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. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 32.94. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 31.96, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BOX in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

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