Technical Signals Point to a Possible Breakout for US FOODS HOLDING CORP.

A possible breakout setup was detected on US FOODS HOLDING CORP (NYSE:USFD) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:USFD.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, USFD scores 8 out of 10 in our technical rating. In the last year, USFD was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, USFD did better than 84% of all other stocks. On top of that, USFD also shows a nice and consistent pattern of rising prices.
• USFD is one of the better performing stocks in the Consumer Staples Distribution & Retail industry, it outperforms 85% of 41 stocks in the same industry.
• USFD 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 USFD is performing more or less in line with the market.
• In the last month USFD has a been trading in the 50.49 - 55.09 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How do we evaluate the setup for NYSE:USFD?

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, NYSE:USFD has a 9 as its setup rating, indicating its current consolidation status.

USFD 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 54.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 52.73, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for USFD in the last couple of days, which is a good sign.

How can NYSE:USFD be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

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.