NASDAQ:SNY may be ready to breakout.

SANOFI-ADR (NASDAQ:SNY) 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:SNY.

Deciphering the Technical Picture of NASDAQ:SNY

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to SNY. Although SNY 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.
• SNY 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 SNY is performing more or less in line with the market.
• In the last month SNY has a been trading in the 49.76 - 53.42 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the performance of all stocks over the past year, SNY turns out to be only a medium performer in the overall market: it outperformed 48% of all stocks.
• SNY is part of the Pharmaceuticals industry. There are 195 other stocks in this industry, SNY did better than 64% of them.

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

Why is NASDAQ:SNY a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:SNY this score is currently 9:

Besides having an excellent technical rating, SNY 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 52.48. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 51.90, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SNY in the last couple of days, which is a good sign.

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.

Of course, there are many ways to trade or not trade NASDAQ:SNY and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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.