CONAGRA BRANDS INC is showing promising signs of setting up for a breakout.

Our stock screener has detected a potential breakout setup on CONAGRA BRANDS INC (NYSE:CAG). 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:CAG.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, CAG scores 7 out of 10 in our technical rating. Although CAG is a bad 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!
• CAG 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 CAG is lagging the market slightly.
• In the last month CAG has a been trading in the 29.59 - 31.37 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.
• CAG is an average performer in the Food Products industry, it outperforms 62% of 92 stocks in the same industry.

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

How does the Setup look for NYSE:CAG

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:CAG currently has a 9 as setup rating:

CAG 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. There is a resistance zone just above the current price starting at 31.13. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.61, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CAG in the last couple of days, which is a good sign.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

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

More breakout setups can be found in our Breakout screener.

Disclaimer

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.