NYSE:UNM may be ready to breakout.

Our stock screener has identified UNUM GROUP (NYSE:UNM) 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:UNM.

Deciphering the Technical Picture of NYSE:UNM

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, UNM scores 8 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, UNM is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• UNM is part of the Insurance industry. There are 141 other stocks in this industry. UNM outperforms 74% of them.
• UNM 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 UNM is leading the market.
• In the last month UNM has a been trading in the 47.38 - 50.36 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, UNM did better than 84% of all other stocks. We also observe that the gains produced by UNM over the past year are nicely spread over this period. However, this overall performance is mostly based on the strong move around 4 months ago.

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

How does the Setup look for NYSE:UNM

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:UNM currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

UNM 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 50.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 49.19, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for UNM in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:UNM?

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.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.