Exploring CENTERPOINT ENERGY INC's Technical Signals and Breakout Potential.

Our stock screener has flagged CENTERPOINT ENERGY INC (NYSE:CNP) 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:CNP for potential movement.

Deciphering the Technical Picture of NYSE:CNP

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.

Overall CNP gets a technical rating of 10 out of 10. Both in the recent history as in the last year, CNP has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, CNP did better than 74% of all other stocks. We also observe that the gains produced by CNP over the past year are nicely spread over this period.
• CNP is one of the better performing stocks in the Multi-Utilities industry, it outperforms 87% of 25 stocks in the same industry.
• CNP is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CNP has a been trading in the 30.59 - 33.12 range, which is quite wide. It is currently trading near the high of this range.

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

How do we evaluate the setup for NYSE:CNP?

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. We see reduced volatility while prices have been consolidating in the most recent period. 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 31.94, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:CNP be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:CNP and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.