PINNACLE WEST CAPITAL (NYSE:PNW) is showing promising signs of setting up for a breakout.

Our stock screener has identified PINNACLE WEST CAPITAL (NYSE:PNW) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:PNW.

Insights from Technical Analysis

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

Taking everything into account, PNW scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, PNW has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, PNW did better than 89% of all other stocks.
• PNW is part of the Electric Utilities industry. There are 46 other stocks in this industry. PNW outperforms 82% of them.
• PNW is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month PNW has a been trading in the 89.00 - 94.86 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of PNW contains the most current technical analsysis.

How do we evaluate the setup for PNW?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for PNW is 7:

PNW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 94.27. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 92.46, a Stop Loss order could be placed below this zone.

Trading setups like PNW

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 PNW 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 screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.