There are signs that NYSE:WY may be ready to breakout.

Our stock screener has detected a potential breakout setup on WEYERHAEUSER CO (NYSE:WY). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:WY.

What is the technical picture of NYSE:WY telling us.

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.

We assign a technical rating of 7 out of 10 to WY. Although WY is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• WY is part of the Specialized REITs industry. There are 28 other stocks in this industry. WY outperforms 85% of them.
• WY 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 WY is lagging the market slightly.
• In the last month WY has a been trading in the 31.90 - 33.86 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When compared to the yearly performance of all other stocks, WY outperforms 58% of them, which is more or less in line with the market.

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

How does the Setup look for NYSE:WY

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, NYSE:WY exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, WY also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 33.40. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 33.24, 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:WY?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.