NextEra Energy NEE-N (yesterday’s close $90.23) declined from $93.73 in December 2021 to $47.15 in October 2023 (A-B), while trading below a long-term falling trendline (dotted line). Despite the sharp rebound from this low to a high of $86.10 (C), the stock continued to face resistance from the long-term descending trendline.
Recently, NextEra Energy broke above both this trendline and its prior high, signalling a breakout and the start of a new uptrend toward higher targets (D).
Technical indicators – including the rising 40-week moving average (40wMA) – reinforce the bullish outlook. There is solid support near $84-86 and secondary support at the 40wMA (currently near $80); a decline below the latter would be negative.
Point & Figure measurements provide an initial upside target of $104. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com