Technical Signals Point to a Possible Breakout for LINCOLN NATIONAL CORP.

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

Insights from Technical Analysis

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.

We assign a technical rating of 8 out of 10 to LNC. Although LNC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• LNC is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the performance of all stocks over the past year, LNC turns out to be only a medium performer in the overall market: it outperformed 50% of all stocks.
• LNC is part of the Insurance industry. There are 143 other stocks in this industry, LNC did better than 45% of them.
• LNC is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so LNC is lagging the market.

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

How does the Setup look for NYSE:LNC

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:LNC has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, LNC also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 28.14. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.97, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for LNC in the last couple of days, which is a good sign.

How to trade NYSE:LNC?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:LNC 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

This article should in no way be interpreted as advice in any way. 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.