Will DXC TECHNOLOGY CO Break Out? A Technical Analysis Perspective.

Our stock screener has spotted DXC TECHNOLOGY CO (NYSE:DXC) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:DXC.

Deciphering the Technical Picture of NYSE:DXC

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, DXC scores 8 out of 10 in our technical rating. Although DXC 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!
• In the last month DXC has a been trading in the 20.02 - 21.70 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.
• When comparing the performance of all stocks over the past year, DXC turns out to be only a medium performer in the overall market: it outperformed 46% of all stocks.
• DXC is part of the IT Services industry. There are 86 other stocks in this industry, DXC did better than 52% of them.
• DXC is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DXC is lagging the market.

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

Why is NYSE:DXC a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DXC has a 10 as its setup rating:

Besides having an excellent technical rating, DXC also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 21.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.99, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DXC in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:DXC 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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Disclaimer

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.