The question on everyone's mind: Will ATMOS ENERGY CORP breakout?

Our stock screener has spotted ATMOS ENERGY CORP (NYSE:ATO) 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:ATO.

Technical analysis of NYSE:ATO

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to ATO. ATO has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The long and short term trends are both positive. This is looking good!
• ATO is one of the better performing stocks in the Gas Utilities industry, it outperforms 92% of 14 stocks in the same industry.
• When compared to the yearly performance of all other stocks, ATO outperforms 51% of them, which is more or less in line with the market.
• ATO is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so ATO is lagging the market.
• In the last month ATO has a been trading in a tight range between 112.31 and 118.27.

Check the latest full technical report of ATO 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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:ATO has a 9 as its setup rating:

ATO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 117.70. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 116.37, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ATO in the last couple of days, which is a good sign.

How can NYSE:ATO be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found 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.