NYSE:NI may be ready to breakout.

A possible breakout setup was detected on NiSource Inc (NYSE:NI) 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:NI.

Technical Analysis Observations

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, NI scores 7 out of 10 in our technical rating. Although NI is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• NI is one of the better performing stocks in the Multi-Utilities industry, it outperforms 82% of 39 stocks in the same industry.
• NI 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 NI is lagging the market slightly.
• When compared to the yearly performance of all other stocks, NI outperforms 44% of them, which is more or less in line with the market.
• In the last month NI has a been trading in a tight range between 24.54 and 25.68.

How does the Setup look for NYSE:NI

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:NI currently has a 9 as setup rating:

Besides having an excellent technical rating, NI also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 25.56. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.25, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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:NI 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.