Indications Suggest AMERICAN WATER WORKS CO INC (NYSE:AWK) Could Be on the Verge of a Breakout.

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

What is the technical picture of AWK telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to AWK. Both in the recent history as in the last year, AWK has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• AWK is part of the Water Utilities industry. There are 14 other stocks in this industry. AWK outperforms 76% of them.
• AWK is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so AWK slightly outperforms the market at the moment.
• In the last month AWK has a been trading in the 137.41 - 155.50 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When comparing the yearly performance of all stocks, we notice that AWK is one of the better performing stocks in the market, outperforming 88% of all stocks. However, this relatively good performance is mostly due to a recent big move.

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

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, AWK has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, AWK 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 148.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 146.43, a Stop Loss order could be placed below this zone.

How to trade AWK?

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.

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.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.