Technical Setup: SM ENERGY CO Appears Poised for a Breakout.

Our stock screener has flagged SM ENERGY CO (NYSE:SM) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:SM for potential movement.

Insights from Technical Analysis

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to SM. In the last year, SM was an average performer in the market. There are positive signs in the very recent evolution, but the medium term picture is still mixed.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• In the last month SM has a been trading in the 39.70 - 45.04 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, SM outperforms 55% of them, which is more or less in line with the market.
• SM is part of the Oil, Gas & Consumable Fuels industry. There are 204 other stocks in this industry, SM did better than 60% of them.
• SM is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so SM is lagging the market.

Check the latest full technical report of SM for a complete technical analysis.

Why is NYSE:SM 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 level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:SM has a 9 as its setup rating, indicating its current consolidation status.

SM has an excellent technical rating and 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 46.20. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.44, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:SM?

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.

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.

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

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.