RADIUS RECYCLING INC (NASDAQ:RDUS) is showing promising signs of setting up for a breakout.

RADIUS RECYCLING INC (NASDAQ:RDUS) 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 NASDAQ:RDUS.

Technical Analysis Observations

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.

Overall RDUS gets a technical rating of 9 out of 10. Both in the recent history as in the last year, RDUS has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• RDUS is part of the Metals & Mining industry. There are 152 other stocks in this industry. RDUS outperforms 96% of them.
• RDUS is currently making a new 52 week high. This is a strong signal, certainly because the S&P500 Index is not trading near new highs.
• Looking at the yearly performance, RDUS did better than 98% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month RDUS has a been trading in a tight range between 28.03 and 29.29.

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

How do we evaluate the setup for RDUS?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, RDUS exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, RDUS 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 29.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 29.06, a Stop Loss order could be placed below this zone.

Trading setups like RDUS

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill 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.