NYSE:WBS Shows Potential for a Breakout.

A possible breakout setup was detected on WEBSTER FINANCIAL CORP (NYSE:WBS) 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:WBS.

Deciphering the Technical Picture of NYSE:WBS

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to WBS. Both in the recent history as in the last year, WBS has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• WBS is one of the better performing stocks in the Banks industry, it outperforms 71% of 407 stocks in the same industry.
• WBS 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 WBS is lagging the market slightly.
• WBS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that WBS is one of the better performing stocks in the market, outperforming 81% of all stocks. However, this overall good ranking is mostly due to the recent strong move.

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

How do we evaluate the setup for NYSE:WBS?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:WBS this score is currently 9:

WBS has an excellent technical rating and 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 59.06, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

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.