There are signs that NYSE:CNP may be ready to breakout.

CENTERPOINT ENERGY INC (NYSE:CNP) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CNP.

Zooming in on the technicals.

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.

Overall CNP gets a technical rating of 8 out of 10. Although CNP is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• CNP is part of the Multi-Utilities industry. There are 25 other stocks in this industry. CNP outperforms 87% of them.
• CNP is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CNP is lagging the market slightly.
• CNP is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that CNP is one of the better performing stocks in the market, outperforming 75% of all stocks. However, this overall good ranking is mostly due to the recent strong move.

Check the latest full technical report of CNP 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:CNP has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, CNP also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 32.63. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.77, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:CNP

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.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.