NYSE:KMI may be ready to breakout.

Our stock screener has spotted KINDER MORGAN INC (NYSE:KMI) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:KMI.

Deciphering the Technical Picture of NYSE:KMI

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 8 out of 10 to KMI. Although KMI is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• A new 52 week high is currently being made by KMI, which is a very good signal! However, this is in line with the S&P500, which is also trading near new highs.
• When comparing the performance of all stocks over the past year, KMI turns out to be only a medium performer in the overall market: it outperformed 66% of all stocks.
• KMI is part of the Oil, Gas & Consumable Fuels industry. There are 211 other stocks in this industry, KMI did better than 63% of them.
• In the last month KMI has a been trading in a tight range between 19.47 and 20.38.

Check the latest full technical report of KMI for a complete technical analysis.

How does the Setup look for NYSE:KMI

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

Besides having an excellent technical rating, KMI 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 20.17. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 19.99, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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.

Of course, there are many ways to trade or not trade NYSE:KMI 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.

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

Keep in mind

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.