Our stock screener has spotted VISTRA CORP (NYSE:VST) 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:VST.
Zooming in on the technicals.
Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.
Taking everything into account, VST scores 8 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.
- The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
- When comparing the yearly performance of all stocks, we notice that VST is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by VST over the past year are nicely spread over this period.
- VST is one of the better performing stocks in the Independent Power and Renewable Electricity Producers industry, it outperforms 81% of 38 stocks in the same industry.
- VST is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
- In the last month VST has a been trading in the 24.00 - 25.97 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
Why is NYSE:VST a setup?
Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:VST this score is currently 8:
VST 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 25.69. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.09, a Stop Loss order could be placed below this zone.
How to trade NYSE:VST?
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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