THE SOUTHERN CO (NYSE:SO) - A Technical Breakout Candidate Worth Watching

THE SOUTHERN CO (NYSE:SO) has been identified as a potential breakout candidate by our technical screening tools. The stock combines a solid technical foundation with a high-quality setup pattern, making it an interesting option for traders looking for opportunities in the utilities sector.

Technical Strength

SO currently holds a Technical Rating of 7, indicating a healthy trend across both short and long-term timeframes. Key points supporting this rating include:

• Positive trends: The stock is in an uptrend, with both short-term and long-term momentum favoring buyers.
• Strong moving averages: The price is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, reinforcing bullish sentiment.
• Relative strength: While not a market leader, SO has outperformed 64% of all stocks over the past year and ranks in the top half of its industry.

Setup Quality

With a Setup Rating of 9, SO presents a compelling consolidation pattern. Key observations:

• Tight trading range: The stock has been consolidating between $87.41 and $91.29 over the past month, reducing volatility.
• Support and resistance levels: A clear support zone exists between $88.26 and $89.81, while resistance sits near $91.40. A breakout above this level could signal further upside.
• Institutional interest: Recent buying activity from large players and a "Pocket Pivot" signal suggest accumulation.

Trade Considerations

A potential entry point could be above $91.60, with a stop-loss below $88.25. This setup offers a controlled risk-reward ratio, with a worst-case loss of about 3.66%.

For more details, review the full technical analysis report for SO.

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Disclaimer

This is not investment advice. Always conduct your own analysis before making trading decisions.