Will CENTERPOINT ENERGY INC (NYSE:CNP) Break Out? A Technical Analysis Perspective.

A possible breakout setup was detected on CENTERPOINT ENERGY INC (NYSE:CNP) 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 NYSE:CNP.

What is the technical picture of NYSE:CNP telling us.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to CNP. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CNP is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, CNP did better than 89% of all other stocks.
• CNP is one of the better performing stocks in the Multi-Utilities industry, it outperforms 75% of 25 stocks in the same industry.
• A new 52 week high is currently being made by CNP, which is a very good signal! Especially since the S&P500 is only trading in the middle part of its 52 week range, so CNP is leading the market.
• In the last month CNP has a been trading in the 31.95 - 34.98 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

Our latest full technical report of CNP contains the most current technical analsysis.

How does the Setup look for NYSE:CNP

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CNP has a 7 as its setup rating:

Besides having an excellent technical rating, CNP also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 34.44. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 34.05, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:CNP be traded?

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.

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.

More breakout setups can be found 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.