OMEGA HEALTHCARE INVESTORS (NYSE:OHI) is setting up nicely for a breakout.

OMEGA HEALTHCARE INVESTORS (NYSE:OHI) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:OHI.

What is the technical picture of OHI telling us.

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 7 out of 10 to OHI. Although OHI has been one of the better performers in the overall market, we have a mixed picture in the medium term time frame. But recently some decent action can be observed again.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• When comparing the yearly performance of all stocks, we notice that OHI is one of the better performing stocks in the market, outperforming 89% of all stocks.
• OHI is part of the Diversified REITs industry. There are 130 other stocks in this industry. OHI outperforms 90% of them.
• In the last month OHI has a been trading in the 35.04 - 39.65 range, which is quite wide. It is currently trading near the high of this range.
• OHI is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

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

Why is OHI a 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 OHI is 8:

OHI has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 39.34. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.33, a Stop Loss order could be placed below this zone.

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.

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.

More breakout setups can be found in our Breakout screener.

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.