Western Midstream Partners L (NYSE:WES) Shows Strong Technical Setup for Potential Breakout

Technical investors often look for stocks showing both good existing momentum and attractive buying opportunities. One methodical way is to search for securities with high technical ratings, pointing to firm price trends, combined with high setup quality scores, which imply the stock is in a period of rest and might be ready for its next move. This process centers on finding leading stocks that are pausing, possibly giving a chance to join their existing upward move with less exposure.

Technical Health Assessment

Western Midstream Partners L (NYSE:WES) shows a firm technical base, receiving a ChartMill Technical Rating of 7. This number indicates a sound trend formation, an important element for the breakout plan since it confirms the stock is already in an existing upward move before a resting period starts. The detailed technical report verifies multiple good elements adding to this rating.

• Trend Direction: Both the recent and longer-term trends for WES are rated as up, creating a good environment for any possible breakout.
• Moving Averages: The stock's price is above its important short-term moving averages (20-day and 50-day), which are also arranged in upward slopes, showing continued demand.
• Market Comparison: Although WES performs similarly to the wider market and its sector, its own positive trend is a more specific factor for this plan, which values the stock's personal chart condition more than its comparison to others.

Setup Quality and Consolidation Pattern

In addition to a firm trend, a good setup is necessary for determining a specific and lower-exposure entry. WES gets a high 9 on the ChartMill Setup Quality Rating, indicating a noteworthy resting formation. This is a key screen for the plan, as it helps find times of lower price movement and price tightening that frequently come before a notable price change.

• Trading Range: During the last month, WES has been moving between $36.90 and $39.74. This time of rest allows for the creation of specific support and resistance points.
• Support and Resistance: The review finds a clear support area between $37.31 and $38.71, giving a sensible point for a stop-loss order. Just above the present price, a resistance area is found from $39.17 to $39.72; a move above this level might indicate the beginning of the next upward phase.
• Positive Signal: A "Pocket Pivot" signal was recently observed, an indicator based on trading volume that implies buying by large investors, giving more support to the positive setup.

Trade Setup Considerations

The pairing of a positive technical rating and a very good setup score offers a specific trading situation. The automated review indicates a possible entry if the price moves above the resistance area at $39.73, with a protective stop loss set below the support area at $37.30. This establishes the trade's exposure at about 6.1% of the entry price. For investors using position sizing determined by total portfolio exposure, this results in a specific amount of money to use to maintain acceptable total portfolio exposure. It is important to note this is an example; traders must always modify entry and exit points to match their personal exposure limits and plan.

Find Additional Breakout Possibilities

The screening method that found WES is done each day to find new possible breakout candidates. Investors can see the latest list of stocks that meet the criteria by going to the Technical Breakout Setups screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. All data and technical analysis are based on publicly available information and should not be relied upon as a sole basis for making investment decisions. Trading securities involves risk, including the potential loss of principal. Always conduct your own research and consider your financial situation and risk tolerance before investing.