NYSE:NI may be ready to breakout.

Our stock screener has spotted NiSource Inc (NYSE:NI) 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:NI.

Technical analysis of NYSE:NI

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 7 out of 10 to NI. 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.

• The long and short term trends are both positive. This is looking good!
• NI is part of the Multi-Utilities industry. There are 39 other stocks in this industry. NI outperforms 82% of them.
• 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 45% 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 25.86.

How do we evaluate the setup 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:

NI 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 25.56. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.29, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:NI?

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.

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