Based on good technical signals, CONOCOPHILLIPS is potentially setting up for a breakout.

We've identified CONOCOPHILLIPS (NYSE:COP) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:COP for further developments.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 8 out of 10 to COP. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, COP is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• COP is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that COP is one of the better performing stocks in the market, outperforming 86% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• COP is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 67% of 217 stocks in the same industry.
• COP is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so COP is lagging the market slightly.

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

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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:COP has a 9 as its setup rating:

COP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 117.72. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 116.39, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:COP

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill 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.