Good technical signals and a possible breakout for Magnolia Oil & Gas Corp.

Magnolia Oil & Gas Corp (NYSE:MGY) 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:MGY.

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

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to MGY. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, MGY did better than 97% of all other stocks. We also observe that the gains produced by MGY over the past year are nicely spread over this period.
• MGY is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 85% of 371 stocks in the same industry.
• MGY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so MGY is lagging the market slightly.
• In the last month MGY has a been trading in the 18.46 - 22.07 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Why is NYSE:MGY a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:MGY scores a 8 out of 10:

Besides having an excellent technical rating, MGY also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 19.56, a stop order could be placed below this zone.

How can NYSE:MGY 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.

Of course, there are many ways to trade or not trade NYSE:MGY 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 analyzer.