MUELLER WATER PRODUCTS INC-A is setting up nicely for a breakout.

Our stockscreener has identified a possible breakout setup on MUELLER WATER PRODUCTS INC-A (NYSE:MWA). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:MWA for potential opportunities.

Analyzing the Technical Aspects

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall MWA gets a technical rating of 10 out of 10. Both in the recent history as in the last year, MWA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, MWA did better than 89% of all other stocks. We also observe that the gains produced by MWA over the past year are nicely spread over this period.
• MWA is part of the Machinery industry. There are 132 other stocks in this industry. MWA outperforms 84% of them.
• MWA is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month MWA has a been trading in the 18.55 - 21.02 range, which is quite wide. It is currently trading near the high of this range.

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

How does the Setup look for NYSE:MWA

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:MWA has a 10 as its setup rating:

Besides having an excellent technical rating, MWA 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 20.70. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 19.65, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MWA in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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

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.