Will NEOGEN CORP breakout?

A possible breakout setup was detected on NEOGEN CORP (NASDAQ:NEOG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:NEOG.

Technical analysis of NASDAQ:NEOG

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall NEOG gets a technical rating of 8 out of 10. Although NEOG is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• NEOG is one of the better performing stocks in the Health Care Equipment & Supplies industry, it outperforms 85% of 204 stocks in the same industry.
• NEOG is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month NEOG has a been trading in the 21.27 - 23.33 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.
• Looking at the yearly performance, NEOG did better than 86% of all other stocks. However, this relatively good performance is mostly due to a recent big move.

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

How does the Setup look for NASDAQ:NEOG

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

NEOG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 23.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.71, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NEOG 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.

More breakout setups can be found in our Breakout screener.

Keep in mind

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.