NASDAQ:EXC may be ready to breakout.

EXELON CORP (NASDAQ:EXC) 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 NASDAQ:EXC.

Technical analysis of NASDAQ:EXC

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 EXC gets a technical rating of 7 out of 10. EXC has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• EXC is one of the better performing stocks in the Electric Utilities industry, it outperforms 72% of 51 stocks in the same industry.
• In the last month EXC has a been trading in the 40.79 - 43.65 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that EXC is one of the better performing stocks in the market, outperforming 87% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• EXC is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so EXC is still doing slightly better than the market.

Why is NASDAQ:EXC 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. NASDAQ:EXC currently has a 8 as setup rating:

Besides having an excellent technical rating, EXC 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 43.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 42.87, a Stop Loss order could be placed below this zone.

Trading breakout setups.

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.

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 analyzer.