The question on everyone's mind: Will PILGRIM'S PRIDE CORP (NASDAQ:PPC) breakout?

A possible breakout setup was detected on PILGRIM'S PRIDE CORP (NASDAQ:PPC) 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:PPC.

Deciphering the Technical Picture of PPC

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that PPC is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by PPC over the past year are nicely spread over this period.
• PPC is one of the better performing stocks in the Food Products industry, it outperforms 96% of 89 stocks in the same industry.
• PPC is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• In the last month PPC has a been trading in the 46.52 - 56.73 range, which is quite wide. It is currently trading near the high of this range.

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

How do we evaluate the setup for PPC?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. PPC scores a 7 out of 10:

PPC 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 53.82. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 52.41, a Stop Loss order could be placed below this zone.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

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.