I've been looking at NRG'S income sheet and let's just say I've seen better. So this brings up the question of how are they going to erase $13 Billion in debt anytime in the near future. With upcoming earning's I think this stock will be headed lower to the $22 level or even lower.
NRG seems forming a nice flag formation. It had lots of insider buying around $17, before its hotting up. We think it has further upside potential
* Trade Criteria *
Date First Found- July 18, 2017
Pattern/Why- Flag formation breakout
Entry Target Criteria- Break of $23.57
Exit Target Criteria- $26.33
Stop Loss Criteria- $22.13
Please check back for Trade...
The cup appears more parabolic, but even so, it's trending upward without the cup & handle to possibly re-test $19. Note decline in volume during the handle formation.
Retest gap today. Decent volume. Looking to play the retest. This stock seems to have really strong and tight support/resistance lines so I'll be looking to switch to a trailing stop if we reach our 2R target up until 19.28 where I'll exit the rest of the position.
If we get a nice Santa Clause melt-up, followed by a sell off in January, expect people to flock to utilities.
The first bill everybody pays is their electricity bill. If we start to get the handle formation, I'm betting the house as soon as we gap up.
