NEE - NextEra of ⬇️ Price Action
REMAINING REASONS TO BE BULLISH
WHY I’M BEARISH
WHAT I’M DOING
- Green energy & ESG projects are still top of mind for many investors
- We still remain above the 100 week moving average and in the green channel
- “Only” trading 26x above earnings
- Growing earnings at 8% a year
- Paying a modest dividend of ~2%
- Not much else I’m afraid…
WHY I’M BEARISH
- The weekly RSI has just entered the bull zone
- We’re perilously close to crossing below the 100 week moving average and on a declining trajectory
- Very much overdue a correction
- A normal P/E ratio would be in 15-18 ratio. This would price it back in the 30s.
- Much better value stocks in the energy sector, paying much higher dividends.
- NEE have traditionally paid as high as 4% yield going back to the early 2000’s, the decline to 1.6% in December 2021 may yet be “beaten” with an even lower yield this time out. This will likely turn away many savvy investors looking for underpriced value.
WHAT I’M DOING
- Definitely NOT buying this stock, not even 30% off all-time highs
- Will be wanting for the trigger to confirm in order to enter short in the coming days
- First target would be $35, with a terminal target of $18 to come back and retest an important level. This would also coincide with the 0.618 fib off the entire 40 year move.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.