NYSE:NRG may be ready to breakout.

A possible breakout setup was detected on NRG ENERGY INC (NYSE:NRG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:NRG.

Analyzing the Technical Aspects

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 NRG gets a technical rating of 9 out of 10. Both in the recent history as in the last year, NRG has proven to be a steady performer, scoring decent points in every aspect analyzed.

• 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 NRG is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, NRG also shows a nice and consistent pattern of rising prices.
• NRG is one of the better performing stocks in the Electric Utilities industry, it outperforms 97% of 44 stocks in the same industry.
• NRG 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 NRG is lagging the market slightly.

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

How does the Setup look for NYSE:NRG

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:NRG scores a 9 out of 10:

NRG 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 very little resistance above the current price. There is a support zone below the current price at 77.86, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NRG in the last couple of days, which is a good sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found 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.