Is ZURN ELKAY WATER SOLUTIONS C Ready to Break Out of Its Range?

Our stock screener has spotted ZURN ELKAY WATER SOLUTIONS C (NYSE:ZWS) 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 NYSE:ZWS.

Deciphering the Technical Picture of NYSE:ZWS

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 9 out of 10 to ZWS. Both in the recent history as in the last year, ZWS 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!
• ZWS is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month ZWS has a been trading in the 38.50 - 40.84 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that ZWS is one of the better performing stocks in the market, outperforming 85% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• ZWS is an average performer in the Building Products industry, it outperforms 68% of 39 stocks in the same industry.

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

Looking at the Setup

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:ZWS has a 10 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, ZWS also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 40.42. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 40.14, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ZWS in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:ZWS

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.

Every day, new breakout setups can be found on ChartMill 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.