DIAMONDBACK ENERGY INC (NASDAQ:FANG) Technical Analysis observations.

Our stock screener has spotted DIAMONDBACK ENERGY INC (NASDAQ:FANG) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:FANG.

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

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• FANG is part of the Oil, Gas & Consumable Fuels industry. There are 217 other stocks in this industry. FANG outperforms 70% of them.
• FANG 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.
• Looking at the yearly performance, FANG did better than 85% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• FANG 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 FANG is lagging the market slightly.
• In the last month FANG has a been trading in a tight range between 144.24 and 151.75.

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

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:FANG is 9:

FANG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 150.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 149.34, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:FANG?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NASDAQ:FANG 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 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.