Today's swing trading analysis will be on NextEra Energy, Inc. which is an electric power and energy infrastructure company. As its name suggests, NEE produces electricity from clean renewable sources including wind and solar. Similar to PLUG, NEE is a good long-term investment.
Going to the technical analysis, the first thing that catches your eyes is the ascending channel. Two yellow zones are the supply and demand zones (support and resistance) and have been ranging in this channel for almost a year.
I believe that it will bounce from the current level looking at various factors.
Firstly, looking at the red circle, you can see that it has bounced from the 200 MA. Generally speaking, 200 MA is good support and mostly bounces when touching it in a bullish trend.
Also, the last two candlesticks are in a bullish engulfing pattern where the latter candle is "engulfing" the former declining candle.
Looking at the weekly chart, it is a green Doji candle indicating a potential reversal. Furthermore, if the stock price goes up today and tomorrow, it will end the weekly candle with a green hammer, which is even more bullish.
In addition, you can see that the price has bounced from the 50 MA line. Moving average lines, in general, are a good support in a bullish trend, not just limited to 200 MA.
Ultimately, the candlestick has bounced from the Fibonacci golden level, which further strengthens my viewpoint that the trend reversal will occur shortly.
My swing entry point will be above yesterday's high ($83.3). Since the whole market is quite uncertain yet, therefore, we need to account for it.
My first price target will be the 0.236 area ($89.8), and the second target is an all-time high.
Stop loss will be below $80.