Good technical signals and a possible breakout for MARATHON OIL CORP.

A possible breakout setup was detected on MARATHON OIL CORP (NYSE:MRO) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:MRO.

Technical Analysis Observations

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.

Taking everything into account, MRO scores 8 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MRO is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that MRO is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by MRO over the past year are nicely spread over this period.
• MRO is part of the Oil, Gas & Consumable Fuels industry. There are 393 other stocks in this industry. MRO outperforms 72% of them.
• In the last month MRO has a been trading in the 24.78 - 28.35 range, which is quite wide. It is currently trading near the high of this range.
• MRO is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Looking at the 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:MRO scores a 8 out of 10:

MRO has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 28.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.78, a Stop Loss order could be placed below this zone.

How to trade NYSE:MRO?

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.

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.

Our Breakout analyzer lists more breakout setups and is updated daily.