Based on good technical signals, MAGNOLIA OIL & GAS CORP - A is potentially setting up for a breakout.

A possible breakout setup was detected on MAGNOLIA OIL & GAS CORP - A (NYSE:MGY) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:MGY.

Zooming in on the technicals.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, MGY scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MGY is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• MGY 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 yearly performance of all stocks, we notice that MGY is one of the better performing stocks in the market, outperforming 77% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• MGY is part of the Oil, Gas & Consumable Fuels industry. There are 217 other stocks in this industry, MGY did better than 50% of them.
• MGY is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so MGY is lagging the market slightly.

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

How do we evaluate the setup for NYSE:MGY?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:MGY currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, MGY 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 22.98. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 21.68, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MGY in the last couple of days, which is a good sign.

How to trade NYSE:MGY?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. 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.