There are signs that NYSE:MTDR may be ready to breakout.

Our stock screener has flagged MATADOR RESOURCES CO (NYSE:MTDR) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:MTDR for potential movement.

Zooming in on the technicals.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall MTDR gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MTDR is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• MTDR is part of the Oil, Gas & Consumable Fuels industry. There are 217 other stocks in this industry. MTDR outperforms 75% of them.
• MTDR 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 MTDR 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.
• MTDR 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 MTDR is lagging the market slightly.

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

Why is NYSE:MTDR a 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:MTDR has a 9 as its setup rating, indicating its current consolidation status.

MTDR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 61.10. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 61.07, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MTDR in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:MTDR be traded?

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.

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.

More breakout setups can be found in our Breakout screener.

Disclaimer

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.