NASDAQ:FLEX Shows Potential for a Breakout.

FLEX LTD (NASDAQ:FLEX) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:FLEX.

Deciphering the Technical Picture of NASDAQ:FLEX

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall FLEX 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, FLEX is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, FLEX did better than 85% of all other stocks. We also observe that the gains produced by FLEX over the past year are nicely spread over this period.
• FLEX 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 FLEX is lagging the market slightly.
• FLEX is part of the Electronic Equipment, Instruments & Components industry. There are 127 other stocks in this industry, FLEX did better than 69% of them.
• In the last month FLEX has a been trading in the 37.15 - 40.18 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NASDAQ:FLEX 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, NASDAQ:FLEX has a 9 as its setup rating:

FLEX 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 very little resistance above the current price. There is a support zone below the current price at 38.54, 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:FLEX

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.

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

Our Breakout screener lists more breakout setups and is updated daily.

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.