There are signs that NYSE:BRO may be ready to breakout.

Our stock screener has identified BROWN & BROWN INC (NYSE:BRO) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:BRO.

What is the technical picture of NYSE:BRO telling us.

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.

Taking everything into account, BRO scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, BRO has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that BRO is one of the better performing stocks in the market, outperforming 85% of all stocks.
• BRO is one of the better performing stocks in the Insurance industry, it outperforms 75% of 142 stocks in the same industry.
• BRO is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so BRO is leading the market.
• In the last month BRO has a been trading in a tight range between 71.19 and 74.57.

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

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:BRO is 9:

Besides having an excellent technical rating, BRO also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 74.20. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.54, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:BRO be traded?

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.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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

Keep in mind

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.