MPLX LP (NYSE:MPLX) showing some interesting technicals. Here's why.

MPLX LP (NYSE:MPLX) 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:MPLX.

Insights from Technical Analysis

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to MPLX. Both in the recent history as in the last year, MPLX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that MPLX is one of the better performing stocks in the market, outperforming 71% of all stocks.
• MPLX 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 MPLX is lagging the market slightly.
• MPLX is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 67% of 216 stocks in the same industry.
• In the last month MPLX has a been trading in a tight range between 35.06 and 36.43.

For an up to date full technical analysis you can check the technical report of MPLX

Why is NYSE:MPLX a 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 NYSE:MPLX is 9:

MPLX 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 36.22. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 35.70, 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.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.