NYSE:ED Shows Potential for a Breakout.

CONSOLIDATED EDISON INC (NYSE:ED) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:ED.

Deciphering the Technical Picture of NYSE:ED

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 ED gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ED is only an average performer.

• The long and short term trends are both positive. This is looking good!
• ED is one of the better performing stocks in the Multi-Utilities industry, it outperforms 70% of 25 stocks in the same industry.
• ED 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 ED is lagging the market slightly.
• ED 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 performance of all stocks over the past year, ED turns out to be only a medium performer in the overall market: it outperformed 67% of all stocks.
• In the last month ED has a been trading in a tight range between 98.64 and 103.38.

For an up to date full technical analysis you can check the technical report of ED

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:ED has a 9 as its setup rating, indicating its current consolidation status.

ED 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 101.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 100.68, 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:ED 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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

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.