Good technical signals and a possible breakout for GEN DIGITAL INC.

A possible breakout setup was detected on GEN DIGITAL INC (NASDAQ:GEN) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:GEN.

Insights from Technical Analysis

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 GEN gets a technical rating of 7 out of 10. In the last year, GEN was one of the better performers, but we do observe some doubts in the very recent evolution.

• 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.
• GEN is part of the Software industry. There are 276 other stocks in this industry. GEN outperforms 82% of them.
• GEN 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 GEN is lagging the market slightly.
• When comparing the yearly performance of all stocks, we notice that GEN is one of the better performing stocks in the market, outperforming 87% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• Volume is considerably higher in the last couple of days.

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

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:GEN exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

GEN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 25.03. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 24.07, 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:GEN

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.

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.

Every day, new breakout setups can be found on ChartMill 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.