The Technical Breakout Setups screen is a straightforward filter designed for technical traders who want to identify stocks that are both technically strong and in the process of forming a consolidation pattern. The strategy hinges on two key proprietary metrics: a Technical Rating, which measures the overall health and trend of a stock, and a Setup Rating, which quantifies the quality of a potential entry point. By requiring both scores to be high, the screen filters for stocks that are not only rising but also have a defined, recent base of support from which a breakout can occur. This approach avoids chasing extended moves and focuses on setups where risk can be better defined.
PACCAR INC (NASDAQ:PCAR) is a global technology company that designs and manufactures light-, medium-, and heavy-duty trucks. After running our Technical Breakout screen, this stock emerged as a candidate due to its strong scores: it holds a Technical Rating of 8 out of 10 and a Setup Rating of 8 out of 10. Both metrics clear the screen’s threshold of 7, placing PCAR in a select group of stocks that combine trend strength with a tangible setup pattern.
A Technically Healthy Trend
A stock’s Technical Rating is the first pillar of the breakout strategy. A score of 8 signals a stock that is in a solid uptrend. For PCAR, the underlying data supports this score clearly. The full technical analysis report confirms that both the short-term and long-term trends are positive—a critical foundation for any potential trade. The stock is currently trading near the high of its recent one-month range (116.31 – 126.80) and is in the upper portion of its 52-week range of 92.25 to 131.875. This positioning against its own history and the broader market is also reflected in its relative strength, where PCAR outperforms 79% of all stocks over the past year.
These metrics are not just abstract numbers. A high Technical Rating provides the confidence that the stock is being bid up over time. Without this foundation, a breakout attempt is far more likely to fail or to be a simple counter-trend bounce. PCAR’s strong volume—averaging over 3 million shares per day—adds liquidity, making it easier to get in and out of a position.
The Setup: A Pattern Ready for a Move
A strong trend is not enough on its own; a trader also needs a coherent entry point. This is where the Setup Rating becomes critical. A score of 8 indicates that PCAR is in a consolidation phase, which the strategy identifies as a healthy digestion of previous gains. The stock has been trading in a relatively tight, sideways range, and its volatility has decreased—a classic precursor to a potential move.
The technical analysis report provides a concrete framework for looking at this setup. It identifies a significant resistance zone just above the current price, ranging from $128.46 to $129.49. The suggested entry point is a buy stop order at $129.50, which is placed just above this resistance level to confirm the breakout. Below the current price, a support zone sits at $123.82, formed by a combination of moving averages and trend lines. A stop-loss order can be logically placed below this zone, providing a defined area of risk. The worst-case loss on this suggested setup is calculated at 8.38% of the capital allocated to the trade.
This structure is the core of the breakout strategy. The combination of a high Technical Rating (trend) and a high Setup Rating (consolidation) creates a scenario where the risk-reward profile is transparent. If the stock can break through its near-term resistance on volume, the path higher is supported by the underlying positive trend. If it fails, the stop-loss area offers a disciplined exit.
Finding More Setups
This kind of analysis is reproducible. The Technical Breakout Setups screen is designed to surface these exact patterns across the market daily. For investors looking to find other stocks with a minimum Technical Rating of 7 and Setup Rating of 7, you can run the screen here to review the latest list of candidates.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Trading in stocks carries significant risk. Always conduct your own research and consider consulting with a financial professional before making any investment decisions.
Read full article here »
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PACCAR Inc (NASDAQ:PCAR) Shows Strong Breakout Setup With Top Technical and Setup Ratings
The Technical Breakout Setups screen is a straightforward filter designed for technical traders who want to identify stocks that are both technically strong and in the process of forming a consolidation pattern. The strategy hinges on two key proprietary metrics: a Technical Rating, which measures the overall health and trend of a stock, and a Setup Rating, which quantifies the quality of a potential entry point. By requiring both scores to be high, the screen filters for stocks that are not only rising but also have a defined, recent base of support from which a breakout can occur. This approach avoids chasing extended moves and focuses on setups where risk can be better defined.
PACCAR INC (NASDAQ:PCAR) is a global technology company that designs and manufactures light-, medium-, and heavy-duty trucks. After running our Technical Breakout screen, this stock emerged as a candidate due to its strong scores: it holds a Technical Rating of 8 out of 10 and a Setup Rating of 8 out of 10. Both metrics clear the screen’s threshold of 7, placing PCAR in a select group of stocks that combine trend strength with a tangible setup pattern.
A Technically Healthy Trend
A stock’s Technical Rating is the first pillar of the breakout strategy. A score of 8 signals a stock that is in a solid uptrend. For PCAR, the underlying data supports this score clearly. The full technical analysis report confirms that both the short-term and long-term trends are positive—a critical foundation for any potential trade. The stock is currently trading near the high of its recent one-month range (116.31 – 126.80) and is in the upper portion of its 52-week range of 92.25 to 131.875. This positioning against its own history and the broader market is also reflected in its relative strength, where PCAR outperforms 79% of all stocks over the past year.
These metrics are not just abstract numbers. A high Technical Rating provides the confidence that the stock is being bid up over time. Without this foundation, a breakout attempt is far more likely to fail or to be a simple counter-trend bounce. PCAR’s strong volume—averaging over 3 million shares per day—adds liquidity, making it easier to get in and out of a position.
The Setup: A Pattern Ready for a Move
A strong trend is not enough on its own; a trader also needs a coherent entry point. This is where the Setup Rating becomes critical. A score of 8 indicates that PCAR is in a consolidation phase, which the strategy identifies as a healthy digestion of previous gains. The stock has been trading in a relatively tight, sideways range, and its volatility has decreased—a classic precursor to a potential move.
The technical analysis report provides a concrete framework for looking at this setup. It identifies a significant resistance zone just above the current price, ranging from $128.46 to $129.49. The suggested entry point is a buy stop order at $129.50, which is placed just above this resistance level to confirm the breakout. Below the current price, a support zone sits at $123.82, formed by a combination of moving averages and trend lines. A stop-loss order can be logically placed below this zone, providing a defined area of risk. The worst-case loss on this suggested setup is calculated at 8.38% of the capital allocated to the trade.
This structure is the core of the breakout strategy. The combination of a high Technical Rating (trend) and a high Setup Rating (consolidation) creates a scenario where the risk-reward profile is transparent. If the stock can break through its near-term resistance on volume, the path higher is supported by the underlying positive trend. If it fails, the stop-loss area offers a disciplined exit.
Finding More Setups
This kind of analysis is reproducible. The Technical Breakout Setups screen is designed to surface these exact patterns across the market daily. For investors looking to find other stocks with a minimum Technical Rating of 7 and Setup Rating of 7, you can run the screen here to review the latest list of candidates.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Trading in stocks carries significant risk. Always conduct your own research and consider consulting with a financial professional before making any investment decisions.
Read full article here »