Good technical signals and a possible breakout for CARETRUST REIT INC.

Our stockscreener has identified a possible breakout setup on CARETRUST REIT INC (NYSE:CTRE). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:CTRE for potential opportunities.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall CTRE gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CTRE is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that CTRE is one of the better performing stocks in the market, outperforming 84% of all stocks. On top of that, CTRE also shows a nice and consistent pattern of rising prices.
• CTRE is one of the better performing stocks in the Diversified REITs industry, it outperforms 78% of 129 stocks in the same industry.
• CTRE is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CTRE has a been trading in a tight range between 29.73 and 31.39.

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

How do we evaluate the setup for NYSE:CTRE?

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:CTRE currently has a 9 as setup rating:

CTRE 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 31.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.68, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CTRE in the last couple of days, which is a good sign.

How to trade NYSE:CTRE?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found 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.