There are signs that NASDAQ:GEN may be ready to breakout.

Our stock screener has spotted GEN DIGITAL INC (NASDAQ:GEN) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:GEN.

Technical analysis of NASDAQ:GEN

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall GEN gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, GEN is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that GEN is one of the better performing stocks in the market, outperforming 85% of all stocks. On top of that, GEN also shows a nice and consistent pattern of rising prices.
• GEN is part of the Software industry. There are 284 other stocks in this industry. GEN outperforms 76% of them.
• GEN is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month GEN has a been trading in the 24.73 - 26.76 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Check the latest full technical report of GEN for a complete technical analysis.

How does the Setup look for NASDAQ:GEN

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 NASDAQ:GEN this score is currently 10:

Besides having an excellent technical rating, GEN also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 26.46. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.09, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GEN in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

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 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.