Interesting Technical Analysis finding for ELEMENT SOLUTIONS INC (NYSE:ESI)

Our stock screener has spotted ELEMENT SOLUTIONS INC (NYSE:ESI) 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:ESI.

Deciphering the Technical Picture of NYSE:ESI

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

Overall ESI gets a technical rating of 7 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, ESI did better than 72% of all other stocks. On top of that, ESI also shows a nice and consistent pattern of rising prices.
• ESI 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 ESI is lagging the market slightly.
• ESI is an average performer in the Chemicals industry, it outperforms 68% of 84 stocks in the same industry.
• In the last month ESI has a been trading in a tight range between 23.10 and 24.23.

Our latest full technical report of ESI contains the most current technical analsysis.

How does the Setup look for NYSE:ESI

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:ESI scores a 9 out of 10:

ESI 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 23.82. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.77, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ESI in the last couple of days, which is a good sign.

Trading breakout setups.

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

Disclaimer

This article should in no way be interpreted as advice in any way. 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.