CMS ENERGY CORP (NYSE:CMS) Reveals Intriguing Technical Aspects. Here's What You Need to Know.

Our stock screener has flagged CMS ENERGY CORP (NYSE:CMS) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:CMS for potential movement.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 10 out of 10 to CMS. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CMS is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CMS is one of the better performing stocks in the market, outperforming 82% of all stocks. We also observe that the gains produced by CMS over the past year are nicely spread over this period.
• CMS is part of the Multi-Utilities industry. There are 25 other stocks in this industry. CMS outperforms 83% of them.
• A new 52 week high is currently being made by CMS, which is a very good signal! However, this is in line with the S&P500, which is also trading near new highs.
• In the last month CMS has a been trading in a tight range between 67.41 and 71.02.

Our latest full technical report of CMS contains the most current technical analsysis.

How do we evaluate the setup for NYSE:CMS?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:CMS is 9:

CMS has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 70.44. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 70.04, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CMS in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:CMS be traded?

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.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

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.