Is SANOFI-ADR Ready to Break Out of Its Range?

Our stock screener has flagged SANOFI-ADR (NASDAQ:SNY) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:SNY for potential movement.

What is the technical picture of NASDAQ:SNY telling us.

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 SNY gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, SNY is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• SNY is one of the better performing stocks in the Pharmaceuticals industry, it outperforms 73% of 194 stocks in the same industry.
• SNY is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• SNY 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.
• 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 57% of all stocks.
• In the last month SNY has a been trading in a tight range between 55.80 and 58.97.

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

Why is NASDAQ:SNY a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:SNY has a 9 as its setup rating, indicating its current consolidation status.

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. There is a resistance zone just above the current price starting at 57.74. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 57.51, 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. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:SNY be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

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.