Good technical signals and a possible breakout for FLEX LTD.

FLEX LTD (NASDAQ:FLEX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:FLEX.

Zooming in on the technicals.

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.

We assign a technical rating of 8 out of 10 to FLEX. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, FLEX is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• FLEX is part of the Electronic Equipment, Instruments & Components industry. There are 124 other stocks in this industry. FLEX outperforms 88% of them.
• A new 52 week high is currently being made by FLEX, which is a very good signal! Especially since the S&P500 is only trading in the middle part of its 52 week range, so FLEX is leading the market.
• In the last month FLEX has a been trading in the 17.11 - 20.50 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that FLEX is one of the better performing stocks in the market, outperforming 90% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Why is NASDAQ:FLEX a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:FLEX currently has a 8 as setup rating:

FLEX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 19.11, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FLEX in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.