Energy holding company NiSource (NI) is another utility stock that's shaping up into a solid breakout trade this week. Outperformance is nothing new at NI -- this name has rallied more than 15% in the last six months, 1.5 times better performance than the S&P 500 has managed to achieve over that same timeframe. And now, NI looks ready to push to even more upside.
NiSource is currently forming an ascending triangle pattern, a bullish price setup that's formed by a horizontal resistance level above shares (in this case at $36), and uptrending support to the downside. Basically, as NI bounces in between those two technically important price levels, it's getting squeezed closer and closer to a breakout above that $36 price ceiling. When that happens, we've got a buy signal in this stock.
Momentum, measured by 14-day RSI, adds some extra confidence to upside in NI right now. Our momentum gauge has been in a long-term uptrend of its own, making higher lows even before the pattern started forming in NI. Since momentum is a leading indicator of price, that fact bodes well for this stock's staying power after the breakout through $36 happens.