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

Our stockscreener has identified a possible breakout setup on US FOODS HOLDING CORP (NYSE:USFD). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:USFD for potential opportunities.

Analyzing the Technical Aspects

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall USFD gets a technical rating of 8 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• 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.
• When comparing the yearly performance of all stocks, we notice that USFD is one of the better performing stocks in the market, outperforming 87% of all stocks. We also observe that the gains produced by USFD over the past year are nicely spread over this period.
• USFD is one of the better performing stocks in the Consumer Staples Distribution & Retail industry, it outperforms 78% of 43 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 a tight range between 65.64 and 69.33.

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

How do we evaluate the setup for NYSE:USFD?

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:

Besides having an excellent technical rating, USFD also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 67.95, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

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.