WARNER MUSIC GROUP CORP-CL A is showing promising signs of setting up for a breakout.

WARNER MUSIC GROUP CORP-CL A (NASDAQ:WMG) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:WMG.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, WMG scores 7 out of 10 in our technical rating. In the last year, WMG was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• Both the short term and long term trends are positive. This is a very positive sign.
• WMG is part of the Entertainment industry. There are 77 other stocks in this industry. WMG outperforms 89% of them.
• Looking at the yearly performance, WMG did better than 92% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• WMG is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so WMG is lagging the market slightly.
• In the last month WMG has a been trading in the 30.41 - 34.04 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How do we evaluate the setup for NASDAQ:WMG?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:WMG scores a 9 out of 10:

Besides having an excellent technical rating, WMG also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 32.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 32.48, 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.

More breakout setups can be found in our Breakout screener.

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.