Exploring EQUITY RESIDENTIAL's Technical Signals and Breakout Potential.

Our stock screener has spotted EQUITY RESIDENTIAL (NYSE:EQR) 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:EQR.

Analyzing the Technical Aspects

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.

Overall EQR gets a technical rating of 8 out of 10. Although EQR 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!
• EQR 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 EQR is leading the market.
• In the last month EQR has a been trading in the 66.61 - 71.78 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, EQR turns out to be only a medium performer in the overall market: it outperformed 63% of all stocks.
• EQR is an average performer in the Residential REITs industry, it outperforms 42% of 20 stocks in the same industry.
• Volume is considerably higher in the last couple of days.

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

Why is NYSE:EQR a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:EQR scores a 9 out of 10:

Besides having an excellent technical rating, EQR 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 70.77. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 70.35, 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 NYSE:EQR

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

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.