Technical Insights for CENTERPOINT ENERGY INC (NYSE:CNP): Is a Breakout Imminent?

Our stock screener has detected a potential breakout setup on CENTERPOINT ENERGY INC (NYSE:CNP). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:CNP.

In-Depth Technical Analysis of NYSE:CNP

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CNP scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CNP 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 CNP is one of the better performing stocks in the market, outperforming 75% of all stocks.
• CNP is one of the better performing stocks in the Multi-Utilities industry, it outperforms 83% of 25 stocks in the same industry.
• 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.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.

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

Why is NYSE:CNP a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CNP currently has a 9 as setup rating:

CNP 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 32.63. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 31.08, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:CNP be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the 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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

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.