Technical Insights for NORDSTROM INC (NYSE:JWN): Is a Breakout Imminent?

Our stock screener has detected a potential breakout setup on NORDSTROM INC (NYSE:JWN). 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:JWN.

Technical Analysis Observations

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.

We assign a technical rating of 8 out of 10 to JWN. In the last year, JWN was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• 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 JWN is one of the better performing stocks in the market, outperforming 76% of all stocks. On top of that, JWN also shows a nice and consistent pattern of rising prices.
• JWN is one of the better performing stocks in the Broadline Retail industry, it outperforms 70% of 32 stocks in the same industry.
• JWN 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 JWN is lagging the market slightly.
• In the last month JWN has a been trading in the 21.71 - 24.99 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NYSE:JWN a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:JWN is 9:

Besides having an excellent technical rating, JWN 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 24.54. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.41, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for JWN in the last couple of days, which is a good sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:JWN and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

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.