NYSE:RMD may be ready to breakout.

Our stock screener has identified RESMED INC (NYSE:RMD) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:RMD.

Deciphering the Technical Picture of NYSE:RMD

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.

Taking everything into account, RMD scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, RMD is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• RMD is part of the Health Care Equipment & Supplies industry. There are 191 other stocks in this industry. RMD outperforms 76% of them.
• RMD 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 RMD is performing more or less in line with the market.
• Looking at the yearly performance, RMD did better than 77% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• In the last month RMD has a been trading in the 196.43 - 225.68 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is NYSE:RMD a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:RMD currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, RMD also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 218.15. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 205.97, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

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.

Our Breakout screener lists more breakout setups and is updated daily.

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.