SHIFT4 PAYMENTS INC-CLASS A is setting up nicely for a breakout.

SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) 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 NYSE:FOUR.

Analyzing the Technical Aspects

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 FOUR gets a technical rating of 7 out of 10. In the last year, FOUR was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• Both the short term and long term trends are positive. This is a very positive sign.
• FOUR is one of the better performing stocks in the Financial Services industry, it outperforms 72% of 102 stocks in the same industry.
• In the last month FOUR has a been trading in the 65.08 - 74.94 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 FOUR is one of the better performing stocks in the market, outperforming 76% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• FOUR is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so FOUR is lagging the market.

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

How do we evaluate the setup for NYSE:FOUR?

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:FOUR scores a 9 out of 10:

Besides having an excellent technical rating, FOUR also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 73.35. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 71.01, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FOUR in the last couple of days, which is a good sign.

Trading setups like NYSE:FOUR

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 NYSE:FOUR 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.

More breakout setups can be found in our Breakout screener.

Keep in mind

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