Good technical signals and a possible breakout for US FOODS HOLDING CORP.

US FOODS HOLDING CORP (NYSE:USFD) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:USFD.

What is the technical picture of NYSE:USFD telling us.

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, USFD scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, USFD has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, USFD did better than 90% 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 82% of 41 stocks in the same industry.
• A new 52 week high is currently being made by USFD, which is a very good signal! However, this is in line with the S&P500, which is also trading near new highs.
• In the last month USFD has a been trading in the 59.00 - 63.13 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of USFD

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:USFD is 9:

USFD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 62.55. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 61.51, 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 to trade NYSE:USFD?

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.

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.