We've identified MPLX LP (NYSE:MPLX) 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:MPLX for further developments.
Deciphering the Technical Picture of NYSE:MPLX
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 MPLX. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MPLX is showing a nice and steady performance.
- The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
- Looking at the yearly performance, MPLX did better than 74% of all other stocks. We also observe that the gains produced by MPLX over the past year are nicely spread over this period.
- MPLX is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so MPLX is performing more or less in line with the market.
- MPLX is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 67% of 220 stocks in the same industry.
- In the last month MPLX has a been trading in a tight range between 35.06 and 36.80.
For an up to date full technical analysis you can check the technical report of MPLX
Why is NYSE:MPLX a setup?
Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:MPLX currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.
MPLX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 36.22. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 36.00, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MPLX in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.
How can NYSE:MPLX be traded?
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.
Of course, there are many ways to trade or not trade NYSE:MPLX 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.
Every day, new breakout setups can be found on ChartMill in our Breakout screener.
Disclaimer
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.
