MGIC INVESTMENT CORP is setting up nicely for a breakout.

Our stock screener has detected a potential breakout setup on MGIC INVESTMENT CORP (NYSE:MTG). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:MTG.

In-Depth Technical Analysis of NYSE:MTG

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall MTG gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MTG is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that MTG is one of the better performing stocks in the market, outperforming 84% of all stocks. We also observe that the gains produced by MTG over the past year are nicely spread over this period.
• MTG is one of the better performing stocks in the Financial Services industry, it outperforms 77% of 102 stocks in the same industry.
• MTG 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 MTG is lagging the market slightly.
• In the last month MTG has a been trading in the 20.11 - 21.57 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Our latest full technical report of MTG contains the most current technical analsysis.

Why is NYSE:MTG 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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:MTG has a 9 as its setup rating:

Besides having an excellent technical rating, MTG 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 21.12. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.89, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MTG in the last couple of days, which is a good sign.

How to trade NYSE:MTG?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Keep in mind

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.