NYSE:WES Shows Potential for a Breakout.

Our stockscreener has identified a possible breakout setup on WESTERN MIDSTREAM PARTNERS L (NYSE:WES). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:WES for potential opportunities.

Analyzing the Technical Aspects

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.

Taking everything into account, WES scores 7 out of 10 in our technical rating. In the last year, WES was one of the better performers, but we do observe some doubts in the very recent evolution.

• When comparing the yearly performance of all stocks, we notice that WES is one of the better performing stocks in the market, outperforming 84% of all stocks.
• WES is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 83% of 211 stocks in the same industry.
• WES 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 WES is lagging the market slightly.
• The short term trend is negative, but the long term trend is still positive. So although the long term is still positive, this may be a trend turning.

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

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:WES currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

WES 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 42.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.61, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for WES in the last couple of days, which is a good sign.

Trading breakout setups.

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.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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.