OMNICOM GROUP (NYSE:OMC) showing some interesting technicals. Here's why.

A possible breakout setup was detected on OMNICOM GROUP (NYSE:OMC) 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 NYSE:OMC.

What is the technical picture of NYSE:OMC telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall OMC gets a technical rating of 7 out of 10. Although OMC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• OMC is part of the Media industry. There are 96 other stocks in this industry. OMC outperforms 75% of them.
• OMC is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so OMC is performing more or less in line with the market.
• When comparing the performance of all stocks over the past year, OMC turns out to be only a medium performer in the overall market: it outperformed 54% of all stocks.
• In the last month OMC has a been trading in the 89.75 - 97.49 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 OMC for a complete technical analysis.

How do we evaluate the setup for NYSE:OMC?

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, NYSE:OMC has a 9 as its setup rating:

Besides having an excellent technical rating, OMC also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 95.01. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 93.26, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

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

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.