Based on good technical signals, VARONIS SYSTEMS INC is potentially setting up for a breakout.

Our stock screener has spotted VARONIS SYSTEMS INC (NASDAQ:VRNS) 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:VRNS.

Insights from Technical Analysis

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.

We assign a technical rating of 9 out of 10 to VRNS. In the last year, VRNS 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 may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that VRNS is one of the better performing stocks in the market, outperforming 93% of all stocks. We also observe that the gains produced by VRNS over the past year are nicely spread over this period.
• VRNS is part of the Software industry. There are 284 other stocks in this industry. VRNS outperforms 86% of them.
• VRNS 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 VRNS is performing more or less in line with the market.
• In the last month VRNS has a been trading in the 45.30 - 51.74 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.

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

How does the Setup look for NASDAQ:VRNS

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:VRNS exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, VRNS also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 45.46, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for VRNS in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:VRNS

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NASDAQ:VRNS 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.

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.