Stock

NRG Energy breakout looks promising but should you buy now?

NRG Energy, Inc. (NYSE:NRG) created a strong resistance at $43, which seemed hard to break. The level held the stock since February 2019 but was breached in August before prices collapsed back.

The stock has now breached the key level and is pushing higher. This follows a bullish run in the past month, in which NRG has returned more than 26%. The stock has returned 8.12% year-to-date.

Besides the energy sector strengths, NRG stock was boosted by its quarterly earnings. Earlier in the month, the company reported net earnings of $71.7 per share in the first quarter. The earnings compare to a loss of $0.33 per share in the prior year.

The higher earnings came despite revenues for the quarter coming at $7.9 billion. The revenue compares to $8.09 billion in the prior year. A significant rise in natural gas and power prices boosted the earnings. Clearly, this was the stock’s catalyst to break past the resistance.

NRG breaches a key resistance as energy prices boost stock

Source – TradingView

Technically, NRG stock is bullish after breaking past the $43 resistance. However, we believe it is not the time to buy the stock. An RSI reading of 66 indicates that the stock is almost at an oversold level and could correct lower.

Besides, NRG’s price pattern shows that anytime it hit a new level, it crashed back to the ascending trendline. The stock is already showing some resistance at $47, and we expect a further correction. We recommend a buy lower at or towards the ascending trendline.

Summary

NRG Energy stock is bullish, but it is not time to buy. The stock could correct to the ascending trendline, and investors should buy lower. A possible decline in energy prices in the future is also a deterrent to long-term hold.

The post NRG Energy breakout looks promising but should you buy now? appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top