Mplx LP is setting up nicely for a breakout.

Our stock screener has spotted Mplx LP (NYSE:MPLX) 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:MPLX.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, MPLX scores 7 out of 10 in our technical rating. In the last year, MPLX was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, MPLX did better than 80% of all other stocks. On top of that, MPLX also shows a nice and consistent pattern of rising prices.
• 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.
• In the last month MPLX has a been trading in the 29.59 - 32.26 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Why is NYSE:MPLX a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:MPLX this score is currently 9:

Besides having an excellent technical rating, MPLX 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 30.68. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 30.52, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:MPLX?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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 analyzer.