NRG Energy (NRG) was reviewed back in July of last year, where I wrote, "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." And I gave a "long-term price target of near $37" based on the Point and Figure chart. NRG has not yet reached our $37 price target but it has doubled from May 2016, when I first recommended it. Not a bad return for a utility. Let's check out the charts again and see how bright the lights are shining.
In this daily bar chart of NRG, below, we can see how the uptrend in the price of NRG has progressed the past year. Prices gapped to the upside in July, kick starting a strong advance. NRG is above the rising 50-day moving average line and above the rising 200-day line which was tested in February. The daily On-Balance-Volume (OBV) line has moved up and sideways with the price action but overall tells us that buyers of NRG have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line last month for an outright go long signal.
In this weekly bar chart of NRG, below, we can see a bullish alignment of the indicators. Prices are above the rising 40-week moving average line. The weekly OBV line shows a very strong move up and signals aggressive buying. The weekly MACD oscillator is turning up for a fresh buy signal.
In this updated Point and Figure chart of NRG, below, we have a new price target of $41.
Bottom line -- NRG is in a strong uptrend and likely to trend still higher in the months ahead. our targets are $37 and then $41. Risk below $25 now.