Technical Signals Point to a Possible Breakout for MERUS NV.

Our stock screener has identified MERUS NV (NASDAQ:MRUS) 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 NASDAQ:MRUS.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 10 out of 10 to MRUS. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MRUS is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that MRUS is one of the better performing stocks in the market, outperforming 97% of all stocks. On top of that, MRUS also shows a nice and consistent pattern of rising prices.
• MRUS is part of the Biotechnology industry. There are 574 other stocks in this industry. MRUS outperforms 93% of them.
• MRUS 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 MRUS is lagging the market slightly.
• In the last month MRUS has a been trading in the 50.51 - 61.28 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 MRUS for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:MRUS currently has a 10 as setup rating:

Besides having an excellent technical rating, MRUS 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 59.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 55.86, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MRUS in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:MRUS 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.

Keep in mind

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.