OGE ENERGY CORP is setting up nicely for a breakout.

A possible breakout setup was detected on OGE ENERGY CORP (NYSE:OGE) 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:OGE.

What is the technical picture of NYSE:OGE telling us.

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.

Taking everything into account, OGE scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, OGE is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, OGE did better than 87% of all other stocks. On top of that, OGE also shows a nice and consistent pattern of rising prices.
• OGE is one of the better performing stocks in the Electric Utilities industry, it outperforms 84% of 50 stocks in the same industry.
• OGE is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so OGE is leading the market.
• In the last month OGE has a been trading in the 36.16 - 38.34 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• Volume is considerably higher in the last couple of days.

How do we evaluate the setup for NYSE:OGE?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:OGE this score is currently 9:

Besides having an excellent technical rating, OGE 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 38.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.54, 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:OGE 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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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