Based on good technical signals, NORDSTROM INC is potentially setting up for a breakout.

Our stock screener has identified NORDSTROM INC (NYSE:JWN) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:JWN.

Deciphering the Technical Picture of NYSE:JWN

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, JWN scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, JWN is showing a nice and steady performance.

• 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 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 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 where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• JWN is an average performer in the Broadline Retail industry, it outperforms 64% of 32 stocks in the same industry.

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

How does the Setup look for NYSE:JWN

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:JWN is 8:

JWN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 23.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.83, a Stop Loss order could be placed below this zone.

How can NYSE:JWN be traded?

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.

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.

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.