NYSE:CNP may be ready to breakout.

Centerpoint Energy Inc (NYSE:CNP) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CNP.

Technical Analysis Observations

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.

Taking everything into account, CNP scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CNP is only an average performer.

• The long and short term trends are both positive. This is looking good!
• CNP is one of the better performing stocks in the Multi-Utilities industry, it outperforms 92% of 39 stocks in the same industry.
• CNP is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When compared to the yearly performance of all other stocks, CNP outperforms 54% of them, which is more or less in line with the market.
• In the last month CNP has a been trading in a tight range between 25.83 and 26.98.

How do we evaluate the setup for NYSE:CNP?

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:CNP currently has a 9 as setup rating:

CNP 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 26.9. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.68, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:CNP

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 NYSE:CNP 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.

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