Will MURPHY OIL CORP breakout?

Our stock screener has spotted MURPHY OIL CORP (NYSE:MUR) 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:MUR.

Technical analysis of NYSE:MUR

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.

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

• The long and short term trends are both positive. This is looking good!
• MUR is part of the Oil, Gas & Consumable Fuels industry. There are 217 other stocks in this industry. MUR outperforms 80% of them.
• MUR is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so MUR is performing more or less in line with the market.
• In the last month MUR has a been trading in the 41.38 - 45.99 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, MUR did better than 90% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

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

Why is NYSE:MUR 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:MUR has a 9 as its setup rating:

Besides having an excellent technical rating, MUR also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 45.20, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:MUR be traded?

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.

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.

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

Keep in mind

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.