• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

A Technical Strategy for NextEra Energy

While I have a couple reservations about some divergences, overall, the charts of NEE look constructive.
By BRUCE KAMICH
Sep 18, 2020 | 10:48 AM EDT
Stocks quotes in this article: NEE, ED, AEP

During the "Lightning Round" segment of Mad Money, Jim Cramer takes caller's questions about stocks in rapid-fire succession. It's a viewer favorite. On Thursday evening one caller asked about NextEra Energy (NEE) : "I like that one, along with Consolidated Edison (ED) and American Electric Power (AEP) ," replied Cramer.

Let's check out the charts of NEE.

In this daily bar chart of NEE, below, we can see that prices have recovered from their February to late March decline. NEE is an uptrend and testing the rising 50-day moving average line. The 200-day moving average line has a positive slope too.

The On-Balance-Volume (OBV) line has improved slightly from its March low and has drifted slightly lower from late July as prices have traded sideways.

The Moving Average Convergence Divergence (MACD) oscillator is close to the zero line but looks like it can or could turn higher from here.


In this weekly bar chart of NEE, below, we can see a mostly positive picture. Prices are in an uptrend over the past three years and are above the rising 40-week moving average line.

Prices have made a new high for the move up but the weekly OBV line is still below its March high generating a bearish divergence as this indicator is not confirming the price high.

The MACD oscillator is also diverging from the price action as it made a lower high when prices made a higher high. The MACD oscillator has narrowed and could cross to the downside in the weeks ahead.   

 
 
In this daily Point and Figure chart of NEE, below, we can see a big upside price target of $390. Impressive. 
 
 
Bottom line strategy: While I have a couple reservations about some divergences, overall, the charts of NEE look constructive. New longs should risk a close below $269 for now. The $390 price target from the Point and Figure chart looks a bit ambitious right now. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Utilities | Mad Money

More from Investing

Market Mistrust May Make for a Move Higher

James "Rev Shark" DePorre
May 26, 2022 4:41 PM EDT

This lack of faith in the market could help put more pressure on the upside, here's how.

Raising HAL

Bruce Kamich
May 26, 2022 3:43 PM EDT

Shares of Halliburton have the energy to make new highs, according to the charts.

When the Markets Are a Game of Risk, Keep This Fund in Your Quiver

Mark Abssy
May 26, 2022 3:15 PM EDT

This ETF manages risk in a nuanced way.

At Some Point, Commodities Find Balance, Too

Maleeha Bengali
May 26, 2022 2:23 PM EDT

Don't forget about the importance of timing and demand as we look at wild moves in oil from the Covid lows to now.

AbbVie's Correction Appears to Be Over: Here's Where the Stock Could Be Headed

Bruce Kamich
May 26, 2022 2:19 PM EDT

Should you be a buyer?

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login