Based on good technical signals, GATES INDUSTRIAL CORP PLC is potentially setting up for a breakout.

Our stockscreener has identified a possible breakout setup on GATES INDUSTRIAL CORP PLC (NYSE:GTES). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:GTES for potential opportunities.

Analyzing the Technical Aspects

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, GTES scores 7 out of 10 in our technical rating. In the last year, GTES was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• 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 one of the better performing stocks in the Machinery industry, it outperforms 87% of 129 stocks in the same industry.
• 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 - 21.02 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.

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

How does the Setup look 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:

GTES has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. 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 20.59, 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.

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.

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.