Exploring GATES INDUSTRIAL CORP PLC's Technical Signals and Breakout Potential.

Our stock screener has detected a potential breakout setup on GATES INDUSTRIAL CORP PLC (NYSE:GTES). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:GTES.

In-Depth Technical Analysis of NYSE:GTES

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to GTES. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that GTES is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by GTES over the past year are nicely spread over this period.
• GTES is part of the Machinery industry. There are 130 other stocks in this industry. GTES outperforms 84% of them.
• GTES 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 GTES is lagging the market slightly.
• In the last month GTES has a been trading in the 19.48 - 21.14 range, which is quite wide. It is currently trading near the high of this range.

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

How do we evaluate the setup for NYSE:GTES?

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:GTES scores a 9 out of 10:

Besides having an excellent technical rating, GTES 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 21.02. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.73, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GTES in the last couple of days, which is a good sign.

Trading breakout setups.

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Our Breakout screener lists more breakout setups and is updated daily.

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.