Will CONSTELLATION ENERGY breakout?

A possible breakout setup was detected on CONSTELLATION ENERGY (NASDAQ:CEG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:CEG.

What is the technical picture of NASDAQ:CEG telling us.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall CEG gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, CEG is a bad performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• CEG is currently trading in the upper part of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So CEG is doing quite good in this market.
• In the last month CEG has a been trading in the 79.57 - 90.18 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.

How does the Setup look for NASDAQ:CEG

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:CEG scores a 7 out of 10:

Besides having an excellent technical rating, CEG 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 very little resistance above the current price.

How to trade NASDAQ:CEG?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NASDAQ:CEG and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.