Indications Suggest NYSE:GAP Could Be on the Verge of a Breakout.

Our stock screener has identified GAP INC/THE (NYSE:GAP) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:GAP.

In-Depth Technical Analysis of NYSE:GAP

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall GAP gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, GAP is only an average performer.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• GAP is one of the better performing stocks in the Specialty Retail industry, it outperforms 72% of 121 stocks in the same industry.
• When comparing the yearly performance of all stocks, we notice that GAP is one of the better performing stocks in the market, outperforming 79% of all stocks. However, this overall performance is mostly based on the strong move around 10 months ago.
• GAP is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so GAP is lagging the market.
• In the last month GAP has a been trading in the 23.25 - 26.41 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 GAP contains the most current technical analsysis.

How do we evaluate the setup for NYSE:GAP?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:GAP has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, GAP 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 25.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 24.26, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GAP in the last couple of days, which is a good sign.

Trading breakout setups.

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.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.