Technical Signals Point to a Possible Breakout for NXP SEMICONDUCTORS NV.

A possible breakout setup was detected on NXP SEMICONDUCTORS NV (NASDAQ:NXPI) 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:NXPI.

Zooming in on the technicals.

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 10 out of 10 to NXPI. Both in the recent history as in the last year, NXPI has proven to be a steady performer, scoring decent points in every aspect analyzed.

• 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 NXPI is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by NXPI over the past year are nicely spread over this period.
• NXPI 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 NXPI is lagging the market slightly.
• NXPI is an average performer in the Semiconductors & Semiconductor Equipment industry, it outperforms 69% of 107 stocks in the same industry.
• In the last month NXPI has a been trading in the 262.53 - 286.87 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 NXPI for a complete technical analysis.

Looking at the Setup

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, NASDAQ:NXPI has a 9 as its setup rating, indicating its current consolidation status.

NXPI has an excellent technical rating and 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 277.18. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 271.48, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NXPI in the last couple of days, which is a good sign.

Trading breakout setups.

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.