KINDER MORGAN INC (NYSE:KMI) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of solid technical strength and a high-quality setup pattern, making it worth a closer look for investors focused on momentum and chart-based strategies.
Technical Strength
KMI currently holds a Technical Rating of 7, indicating a favorable trend. Key observations from the technical report include:
Long-term uptrend: The stock remains in a positive long-term trend despite short-term neutrality.
Strong relative performance: Over the past year, KMI has outperformed 91% of all stocks in the market and 92% of its peers in the Oil, Gas & Consumable Fuels sector.
Supportive moving averages: The stock is trading above key moving averages (20-day, 50-day, 100-day, and 200-day), reinforcing bullish momentum.
Recent consolidation: Prices have been trading in a range between $25.43 and $27.86 over the past month, with KMI currently near the upper end.
Setup Quality
KMI’s Setup Rating of 8 suggests a well-defined consolidation pattern, often a precursor to a breakout. Key setup characteristics include:
Tight price action: Reduced volatility and a narrowing trading range indicate potential accumulation.
Clear support levels: Multiple support zones exist below the current price, including a strong area between $26.88 and $27.08.
Recent pocket pivot: A bullish volume pattern was recently detected, signaling institutional interest.
Breakout level at $27.69: A move above this resistance could confirm upward momentum.
Trade Considerations
A suggested trade setup based on the analysis:
Entry: $27.69 (above resistance)
Stop-loss: $26.87 (below support)
Risk/reward: The trade carries a potential loss of 2.96% if stopped out.