NRG Energy Sees a Major Upside Breakout

 | Jul 13, 2017 | 3:50 PM EDT
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I haven't talked about NRG Energy (NRG)  for more than a year,  but we are happy with the results where we said, "Traders could use weakness to $14 and $12 if available to go long NRG."
 
Recently NRG has soared higher breaking out to a multi-year high and reaching price levels not seen since early 2015. Let's see if NRG is a buy, hold, or a take profits security. 
 
In this daily bar chart of NRG, below, we can see how prices turned up in November of last year climbing from $10 to $19 before correcting. Prices are above the now rising 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line has been positive for the past twelve months and jumped to a new high for the move up in recent days. The MACD oscillator is back above the zero line and bullish.
 
 
In this weekly bar chart of NRG, below, we can see a two year base pattern with prices breaking above resistance around $19. NRG is above the rising 40-week moving average line. The weekly OBV line is pointed up and the MACD oscillator is turning bullish again.
 
 
There are no price gaps in this Point and Figure chart of NRG, below. There is no volume or sense of time on this kind of chart but a long-term price target of near $37 is projected.
 
Bottom line -- longs should hold NRG and raise stops to $17. If you are looking to go long NRG I would suggest a buy order just below $21.

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