In his "Executive Decision" segment in Friday's Mad Money show, our own Jim Cramer sat down with Leo Denault the chairman and CEO of Entergy Corp. (ETR) . Regular readers of Kamich's Korner should know that I let other's dive into the fundamentals and I try to keep focused on the charts and indicators.
Does ETR have a bullish future? Let's check.
In this daily bar chart of ETR, below, we can see that the share price of ETR has made some big up and down swings the past year. Traders trying to use moving averages to time their purchases and sales have probably been "whipsawed." Currently ETR is above the flat 200-day moving average line and the slightly positive 50-day line.
The level of trading volume has increased significantly this month and the daily On-Balance-Volume (OBV) line broke out on the upside to a new high. A rising OBV line tells us that buyers of ETR have been more aggressive. Breakouts in the OBV line can lead price breakouts.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the upside in May and June for cover shorts buy signals and it is close to an outright go long signal.
In this weekly bar chart of ETR, below, we can see that prices are right on the flat 40-week moving average line. The weekly OBV line has been strong since February and the MACD oscillator is close to crossing above the zero line.
In this Point and Figure chart of ETR, below, we can see that a trade at $82 will be an upside breakout and open the way to a potential upside price target of $97.
Bottom line: ETR has the chart potential to retest its November zenith. Traders could go long on strength above $82 risking to $78. $97 and the round number of $100 are my price targets.