Technical Setup: SOUTHERN CO/THE Appears Poised for a Breakout.

We've identified SOUTHERN CO/THE (NYSE:SO) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:SO for further developments.

Deciphering the Technical Picture of NYSE:SO

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall SO gets a technical rating of 8 out of 10. In the last year, SO was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that SO is one of the better performing stocks in the market, outperforming 77% of all stocks. On top of that, SO also shows a nice and consistent pattern of rising prices.
• 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.
• In the last month SO has a been trading in the 82.05 - 87.48 range, which is quite wide. It is currently trading near the high of this range.
• SO is an average performer in the Electric Utilities industry, it outperforms 68% of 46 stocks in the same industry.

For an up to date full technical analysis you can check the technical report of SO

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.

SO 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 86.50. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 86.42, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:SO

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.

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

Disclaimer

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.