NiSource Inc (NYSE:NI) Presents a High-Probability Technical Breakout Setup

Technical analysis investors often look for stocks showing both solid momentum and good entry points. The Technical Breakout Setups method handles this by sorting for equities with high ChartMill Technical Ratings, which assess overall technical condition, and high ChartMill Setup Quality Ratings, which spot consolidation patterns ready for possible breakouts. This two-part rating system helps find securities that are not only in clear uptrends but are also making patterns that point to a low-risk, high-reward entry chance. NISOURCE INC (NYSE:NI) currently offers a strong case that fits these strict requirements, as shown in its technical report.

Technical Strength and Momentum

A central idea of the breakout strategy is investing in assets with confirmed upward momentum, and NiSource's technical profile is very solid. The stock has a perfect ChartMill Technical Rating of 10, putting it in the top group of all stocks from a technical viewpoint. This high rating is supported by several main parts that show continued bullish momentum. The long and short term trends are both positive, creating a strong push for the stock's price movement. Its relative strength is especially significant, as it does better than 79% of the whole market and 91% of its peers in the Multi-Utilities industry over the last year. This shows the stock is not just going up, but is a market frontrunner.

Further supporting this strength is the stock's position compared to its moving averages, a common measure of trend condition.

• The current price is solidly above its important moving averages (20-day, 50-day, 100-day, and 200-day).
• All these moving averages are themselves in upward arrangements, confirming the trend's staying power.
• The stock is trading near its 52-week high of $44.52, a typical feature of a solid uptrend.

This combination of factors—a perfect technical rating, leading relative strength, and position above rising moving averages—gives a firm base for the breakout idea, answering the strategy's first question of which stock has the needed technical energy.

Setup Quality and Consolidation Pattern

While a solid trend is vital, the when to enter is just as important to avoid buying at a high price. NiSource deals with this with a very good ChartMill Setup Quality Rating of 9. This high mark shows the stock is in a time of consolidation, trading in a narrow range after its recent climb, which often comes before the next upward move. The technical report points out a specific "bull flag" pattern, a technical shape that usually ends by continuing the earlier uptrend. This time of lower volatility and sideways movement allows for the setting of clear support and resistance levels, which are key for handling risk.

The setup study gives specific price points for making a possible breakout trade.

• Resistance Zone: A set resistance area is found between $44.14 and $44.18, made by several trendlines.
• Support Zone: A solid support zone is located between $43.29 and $43.97, formed by a mix of moving averages and trendlines.
• Entry and Exit: The proposed setup involves a buy-stop order just above resistance at $44.19, confirming the breakout has happened. A stop-loss order would be set just below the support zone at $43.28, capping the possible loss to about 2.06%.
• Positive Signal: A recent "Pocket Pivot" signal, which shows buying through rising price and volume, gives more support to the bullish setup.

This high-grade consolidation, with its clear borders and low volatility, is a good example of the kind of pattern the Technical Breakout strategy looks for, giving a reasoned entry trigger and a close level to control risk.

Conclusion

NISOURCE INC shows a classic case for technical investors using a breakout method. It joins a top-level technical rating of 10, showing solid and continued upward momentum, with a setup quality rating of 9, showing a helpful consolidation phase. The existence of a bull flag pattern, clear support and resistance levels, and a recent pocket pivot signal together build a solid case for a possible continuation of the uptrend after a breakout above the $44.19 level. For investors using this method, NI stands as a candidate where the basic trend strength and the tactical entry quality are in good agreement.

This review of NiSource was found using a systematic screening process. Investors curious about finding similar technical breakout chances on a daily basis can view the present results through the Technical Breakout Setups screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. All trading and investment decisions involve risk, including the possible loss of principal. The technical setup described is generated automatically and is not a recommendation. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.