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

We've identified US FOODS HOLDING CORP (NYSE:USFD) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:USFD for further developments.

Technical Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, USFD scores 10 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, USFD 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 USFD is one of the better performing stocks in the market, outperforming 87% of all 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 77% of 41 stocks in the same industry.
• USFD 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 USFD is lagging the market slightly.
• In the last month USFD has a been trading in the 65.64 - 69.95 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

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

How does the Setup look 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. There is very little resistance above the current price. There is a support zone below the current price at 68.31, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:USFD?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

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.