SEMPRA is setting up nicely for a breakout.

Our stock screener has identified SEMPRA (NYSE:SRE) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:SRE.

Zooming in on the technicals.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 7 out of 10 to SRE. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, SRE is only an average performer.

• The long and short term trends are both positive. This is looking good!
• SRE is one of the better performing stocks in the Multi-Utilities industry, it outperforms 87% of 25 stocks in the same industry.
• SRE 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 SRE is lagging the market slightly.
• When comparing the performance of all stocks over the past year, SRE turns out to be only a medium performer in the overall market: it outperformed 64% of all stocks.
• In the last month SRE has a been trading in a tight range between 74.40 and 77.30.

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

Why is NYSE:SRE a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SRE currently has a 9 as setup rating:

Besides having an excellent technical rating, SRE 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 77.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 76.49, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:SRE?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

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.