Will NEWS CORP - CLASS A Break Out? A Technical Analysis Perspective.

We've identified NEWS CORP - CLASS A (NASDAQ:NWSA) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:NWSA for further developments.

Zooming in on the technicals.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to NWSA. In the last year, NWSA was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that NWSA is one of the better performing stocks in the market, outperforming 87% of all stocks. We also observe that the gains produced by NWSA over the past year are nicely spread over this period.
• NWSA is one of the better performing stocks in the Media industry, it outperforms 82% of 92 stocks in the same industry.
• NWSA 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 NWSA is lagging the market slightly.
• In the last month NWSA has a been trading in a tight range between 27.05 and 28.62.

Our latest full technical report of NWSA contains the most current technical analsysis.

Looking at the Setup

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 NASDAQ:NWSA is 10:

Besides having an excellent technical rating, NWSA 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 27.66. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.56, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NWSA in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:NWSA?

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.

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 article should in no way be interpreted as advice. 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.