The question on everyone's mind: Will COGNIZANT TECH SOLUTIONS-A breakout?

Our stockscreener has identified a possible breakout setup on COGNIZANT TECH SOLUTIONS-A (NASDAQ:CTSH). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:CTSH for potential opportunities.

In-Depth Technical Analysis of NASDAQ:CTSH

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to CTSH. Although CTSH 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!
• CTSH 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 CTSH is lagging the market slightly.
• When compared to the yearly performance of all other stocks, CTSH outperforms 51% of them, which is more or less in line with the market.
• CTSH is part of the IT Services industry. There are 86 other stocks in this industry, CTSH did better than 60% of them.
• In the last month CTSH has a been trading in a tight range between 74.27 and 78.05.

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

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:CTSH has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, CTSH 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 77.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 76.77, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:CTSH

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NASDAQ:CTSH 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.