There are signs that NYSE:RY may be ready to breakout.

ROYAL BANK OF CANADA (NYSE:RY) 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:RY.

Zooming in on the technicals.

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.

Taking everything into account, RY scores 7 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, RY is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• RY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so RY is lagging the market slightly.
• RY is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
• When compared to the yearly performance of all other stocks, RY outperforms 61% of them, which is more or less in line with the market.
• RY is an average performer in the Banks industry, it outperforms 59% of 416 stocks in the same industry.
• In the last month RY has a been trading in a tight range between 96.69 and 101.79.

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

Looking at the Setup

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, NYSE:RY exhibits a 10 setup rating, indicating its consolidation status in recent days and weeks.

RY 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 99.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 98.57, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for RY in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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.

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

This article should in no way be interpreted as advice in any way. 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.