TC Energy Corp (NYSE:TRP) Shows Bull Flag Setup Ahead of Potential Breakout

For investors using technical analysis to find possible opportunities, the process often focuses on two main questions: which stock to buy and when to buy it. A methodical way to answer these questions is to look for stocks that are both technically sound and building a positive price pattern. The aim is to find equities in a clear uptrend that are pausing after gains, providing a specific entry point for a possible next rise. This approach joins a high "Technical Rating," which evaluates the general condition and trend of a stock, with a high "Setup Quality Rating," which finds times of price pause that frequently come before advances.

TC Energy Corp (NYSE:TRP) recently appeared from this kind of screening process, showing traits that might interest technically-focused investors. As a large North American energy infrastructure company, its recent price movement indicates it might be ready for a change.

A Technically Sound Base

The main filter in a breakout screen is a high Technical Rating, which confirms a stock is in a good, steady uptrend instead of just having a short-lived rise. TC Energy’s technical picture is particularly solid, receiving a top score of 9 out of 10. A full look at this rating is in its full technical report.

This high number comes from several areas of firmness:

• Positive Trend Agreement: Both the short-term and long-term trends for TRP are scored as positive, a pairing that shows continued buying interest across various time frames.
• Firm Relative Performance: The stock is doing better than a large part of the wider market and its competitors in the Oil, Gas & Consumable Fuels industry over the last year.
• Supportive Moving Averages: The stock’s price is above all its main simple moving averages (20, 50, 100, and 200-day), and each of these averages is itself in a rising pattern. This layered agreement of moving averages is a standard sign of a firm upward trend.

This technical firmness is important for the plan because it raises the chance that any move out of a pause will keep going in the direction of the main trend, instead of stopping or turning down.

A High-Grade Setup for Entry

While a firm trend is needed, it is not enough for a best entry. A stock can be high in price, making a new buy risky. This is where the Setup Quality Rating becomes key, as it finds stocks that are stopping or pulling back in a steady way inside their larger uptrend. TC Energy also does well here, with a Setup Rating of 9.

The present chart pattern shows what analysts often call a "bull flag." After a firm rise, the stock has started a time of tight pause over the last month, moving in a small range. This action lowers movement and creates a base of support. Main parts of this setup are:

• Clear Support and Resistance: The pause has made a definite support area near $54.24 and a resistance area just above $55.11. These points give clear reference levels for trade planning.
• Recent Accumulation Sign: The technical report mentions a recent "Pocket Pivot" sign, a pattern where the stock moves up on higher volume than any down volume day in the recent time, pointing to institutional gathering during the pause.
• Nearness to Breakout: With the stock trading at $54.37, it is sitting just under the noted resistance. A clear move above this area could signal the finish of the pause and the start of a new upward part.

The high setup score speaks straight to the "when" question of the plan. It shows that the stock is not overpriced but is instead tightening, giving a possible lower-risk entry point set by close support if a move above resistance happens.

A Specific Trading Plan

From this technical and setup study, a sample trading plan can be made. It is important to see this is a descriptive example made from the data, not a suggestion.

• Possible Entry: A buy order could be set just above the resistance area, at $55.25, to confirm the move out is starting.
• Possible Exit/Stop-Loss: A stop-loss order could be placed just under the close support and the 10-day low, near $53.28, to control risk if the move out does not work.
• Risk Measures: This plan would mean a risk of about 1.97 points, or 3.57% on the trade itself.

Locating Like Chances

TC Energy Corp shows the kind of chance that methodical technical screening tries to find: a basically firm trend joined with a positive entry pattern. Investors wanting to see a daily-updated list of stocks that meet like high technical and setup rules can view the Technical Breakout Setups screen.

---

Disclaimer: This article is for information only and does not make investment advice, a suggestion, or an offer to buy or sell any security. The trading plan shown is an automatic, descriptive example based on technical measures and is not made for any person's financial position or risk comfort. Always do your own complete research, think about related news events like coming earnings, and talk with a qualified financial advisor before making any investment choices. Past results do not show future results.