Good technical signals and a possible breakout for TEMPUR SEALY INTERNATIONAL I.

Our stock screener has identified TEMPUR SEALY INTERNATIONAL I (NYSE:TPX) 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:TPX.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, TPX scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, TPX is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that TPX is one of the better performing stocks in the market, outperforming 94% of all stocks. On top of that, TPX also shows a nice and consistent pattern of rising prices.
• TPX is part of the Household Durables industry. There are 67 other stocks in this industry. TPX outperforms 75% of them.
• TPX is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so TPX is leading the market.
• In the last month TPX has a been trading in the 42.89 - 47.17 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

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

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:TPX scores a 9 out of 10:

Besides having an excellent technical rating, TPX 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 45.53. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 45.23, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TPX in the last couple of days, which is a good sign.

Trading setups like NYSE:TPX

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

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.