The Technical Breakout Setups screen is a straightforward tool designed to answer two critical questions for any trader: which stock to buy and when to buy it. It filters for stocks that combine strong technical health with a favorable chart pattern, ensuring they are both in an uptrend and currently forming a consolidation zone that could lead to a profitable breakout. This method relies on two proprietary ChartMill ratings—the Technical Rating and the Setup Quality Rating—to quantify these aspects, providing a data-driven approach to identifying high-potential entries.
One stock that has clearly caught this screen’s attention is PPG INDUSTRIES INC (NYSE:PPG). The ChartMill Technical report gives PPG an overall technical rating of 8 out of 10, placing it firmly in the category of stocks with solid technical health. This rating is crucial because it confirms the stock is in an uptrend—the first prerequisite for any breakout setup. According to the report, both the short-term and long-term trends for PPG are positive, a major bullish signal. Additionally, all major moving averages (the 20, 50, 100, and 200-day SMAs) are rising, reinforcing the strength and direction of the trend. The stock also shows a bull flag pattern, which often leads to further upside after a brief pullback. While PPG outperforms about 53% of all stocks over the past year—putting it in line with the broader market—it's important to note that it is currently trading in the middle of its 52-week range, suggesting it has room to run compared to the market, which is near its highs.
Beyond its strong technical trend, PPG also meets the second critical criterion: a high-quality setup. The stock earned a Setup Quality Rating of 8 out of 10, indicating that it is currently in a consolidation pattern with reduced volatility. This is key because, as the breakout strategy dictates, you want to buy into a stock that has recently paused its advance, not one that is already extended. The report notes that prices have been pulling back slightly, forming a tight range that presents a potential entry point. It also highlights a recent Pocket Pivot signal—a price/volume accumulation pattern where volume on an up day exceeds the highest down volume of the past 10 days—which adds further weight to the bullish case. There is very little resistance above the current price, which supports the possibility of a clean breakout.
For traders looking to act, the technical analysis suggests a potential setup based on these ratings. The report recommends an entry point at $120.94, which is just above a resistance zone, with a stop loss at $112.87—resulting in a worst-case loss of about 6.7%. This structure allows for a clear risk-reward profile, in line with the breakout strategy’s emphasis on defined entry and exit points. Keep in mind that this is an automated suggestion and should be validated with your own research, particularly regarding upcoming news or earnings.
If PPG fits your criteria, you’re in luck—it’s not the only one. The screen regularly identifies many other stocks meeting these same conditions. To explore more breakout setups in technically strong stocks, check out the full list via the Technical Breakout Setups screen here: [https://www.chartmill.com/stock/stock-screener?sid=202&f=v1_50b500,atrpct_a_1,sl_ta_7_X,sl_se_7_X,p_pg20&s=se&v=3&timeframe=WEEKLY&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1].
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk, and past performance is not indicative of future results. Always perform your own analysis before making any trading decisions.
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PPG INDUSTRIES INC (NYSE:PPG) Scores Strong Technical Ratings, Setting Up Potential Breakout Entry
The Technical Breakout Setups screen is a straightforward tool designed to answer two critical questions for any trader: which stock to buy and when to buy it. It filters for stocks that combine strong technical health with a favorable chart pattern, ensuring they are both in an uptrend and currently forming a consolidation zone that could lead to a profitable breakout. This method relies on two proprietary ChartMill ratings—the Technical Rating and the Setup Quality Rating—to quantify these aspects, providing a data-driven approach to identifying high-potential entries.
One stock that has clearly caught this screen’s attention is PPG INDUSTRIES INC (NYSE:PPG). The ChartMill Technical report gives PPG an overall technical rating of 8 out of 10, placing it firmly in the category of stocks with solid technical health. This rating is crucial because it confirms the stock is in an uptrend—the first prerequisite for any breakout setup. According to the report, both the short-term and long-term trends for PPG are positive, a major bullish signal. Additionally, all major moving averages (the 20, 50, 100, and 200-day SMAs) are rising, reinforcing the strength and direction of the trend. The stock also shows a bull flag pattern, which often leads to further upside after a brief pullback. While PPG outperforms about 53% of all stocks over the past year—putting it in line with the broader market—it's important to note that it is currently trading in the middle of its 52-week range, suggesting it has room to run compared to the market, which is near its highs.
Beyond its strong technical trend, PPG also meets the second critical criterion: a high-quality setup. The stock earned a Setup Quality Rating of 8 out of 10, indicating that it is currently in a consolidation pattern with reduced volatility. This is key because, as the breakout strategy dictates, you want to buy into a stock that has recently paused its advance, not one that is already extended. The report notes that prices have been pulling back slightly, forming a tight range that presents a potential entry point. It also highlights a recent Pocket Pivot signal—a price/volume accumulation pattern where volume on an up day exceeds the highest down volume of the past 10 days—which adds further weight to the bullish case. There is very little resistance above the current price, which supports the possibility of a clean breakout.
For traders looking to act, the technical analysis suggests a potential setup based on these ratings. The report recommends an entry point at $120.94, which is just above a resistance zone, with a stop loss at $112.87—resulting in a worst-case loss of about 6.7%. This structure allows for a clear risk-reward profile, in line with the breakout strategy’s emphasis on defined entry and exit points. Keep in mind that this is an automated suggestion and should be validated with your own research, particularly regarding upcoming news or earnings.
If PPG fits your criteria, you’re in luck—it’s not the only one. The screen regularly identifies many other stocks meeting these same conditions. To explore more breakout setups in technically strong stocks, check out the full list via the Technical Breakout Setups screen here: [https://www.chartmill.com/stock/stock-screener?sid=202&f=v1_50b500,atrpct_a_1,sl_ta_7_X,sl_se_7_X,p_pg20&s=se&v=3&timeframe=WEEKLY&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1].
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading stocks involves risk, and past performance is not indicative of future results. Always perform your own analysis before making any trading decisions.
Read full article here »