Exploring URBAN OUTFITTERS INC's Technical Signals and Breakout Potential.

Our stock screener has spotted URBAN OUTFITTERS INC (NASDAQ:URBN) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:URBN.

Technical analysis of NASDAQ:URBN

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, URBN scores 9 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, URBN 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 URBN is one of the better performing stocks in the market, outperforming 83% of all stocks. We also observe that the gains produced by URBN over the past year are nicely spread over this period.
• URBN is one of the better performing stocks in the Specialty Retail industry, it outperforms 72% of 125 stocks in the same industry.
• URBN 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 URBN is lagging the market slightly.
• In the last month URBN has a been trading in the 38.88 - 43.31 range, which is quite wide. It is currently trading near the high of this range.

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

Looking at the 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:URBN this score is currently 9:

URBN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. We notice that large players showed an interest for URBN in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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:URBN 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.

More breakout setups can be found in our Breakout screener.

Keep in mind

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.