Technical Setup: MARATHON OIL CORP Appears Poised for a Breakout.

MARATHON OIL CORP (NYSE:MRO) 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 NYSE:MRO.

Deciphering the Technical Picture of NYSE:MRO

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• MRO 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 MRO is lagging the market slightly.
• In the last month MRO has a been trading in the 27.06 - 29.04 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, MRO outperforms 61% of them, which is more or less in line with the market.
• MRO is part of the Oil, Gas & Consumable Fuels industry. There are 211 other stocks in this industry, MRO did better than 61% of them.

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

How does the Setup look for NYSE:MRO

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:MRO currently has a 9 as setup rating:

MRO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 29.03. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.45, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MRO in the last couple of days, which is a good sign.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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.