Macquarie Infrastructure Company Trust is setting up nicely for a breakout.

Our stock screener has spotted Macquarie Infrastructure Company Trust (NYSE:MIC) 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 NYSE:MIC.

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

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.

Overall MIC gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MIC is only an average performer.

• The long and short term trends are both positive. This is looking good!
• MIC 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 MIC is lagging the market slightly.
• MIC 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 compared to the yearly performance of all other stocks, MIC outperforms 68% of them, which is more or less in line with the market.
• MIC is an average performer in the Transportation Infrastructure industry, it outperforms 42% of 7 stocks in the same industry.
• In the last month MIC has a been trading in a tight range between 37.92 and 39.11.

Looking at the Setup

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:MIC currently has a 10 as setup rating:

Besides having an excellent technical rating, MIC 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 38.61. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.46, a stop order could be placed below this zone. We notice that large players showed an interest for MIC in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:MIC?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.