Will SOUTHERN CO/THE Break Out? A Technical Analysis Perspective.

Our stockscreener has identified a possible breakout setup on SOUTHERN CO/THE (NYSE:SO). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:SO for potential opportunities.

Technical Analysis Observations

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to SO. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SO 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, SO did better than 83% of all other stocks. On top of that, SO also shows a nice and consistent pattern of rising prices.
• SO is part of the Electric Utilities industry. There are 45 other stocks in this industry. SO outperforms 95% of them.
• SO 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 SO is lagging the market slightly.
• SO is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

Looking at the 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:SO has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, SO 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 a resistance zone just above the current price starting at 88.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 84.00, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SO in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:SO be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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. 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.