Good technical signals and a possible breakout for SHIFT4 PAYMENTS INC-CLASS A.

We've identified SHIFT4 PAYMENTS INC-CLASS A (NYSE:FOUR) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:FOUR for further developments.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 7 out of 10 to FOUR. 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.

• The long and short term trends are both positive. This is looking good!
• FOUR is part of the Financial Services industry. There are 103 other stocks in this industry. FOUR outperforms 71% of them.
• In the last month FOUR has a been trading in the 68.07 - 75.28 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that FOUR is one of the better performing stocks in the market, outperforming 78% 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.

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

How do we evaluate the setup for NYSE:FOUR?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:FOUR this score is currently 9:

FOUR has an excellent technical rating and 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 73.84. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.35, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:FOUR be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.

Disclaimer

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.