SSE moving on up, after a 6 month consolidationSSE has now resumed it's uptrend after breaking our in August last year. So, that took about 6 months of consolidation and a few tests of previous resistance at approx. 1500 which is now support.
SSEP/N trade ideas
SSE - So Simple & Easy - BUY @£1,766REASONS TO BE BULLISH
Technical - Recently broke all-time high from 2007 - 15 yes FIFTEEN years ago!
Technical - Crossed the 50 MA some weeks back and just reclaimed the top of the purple channel. Holding there at support. A great time to reload.
Technical - 50, 100 and 200 MAs all the right way around now, after crossing back in October 2020.
Technical - Back in 2019, we had a double-threshold break. Crossing the 50 MA and entering the RSI bull zone on the same candle - my favourite type of entry. it has already back-tested that move.
Fundamental - Providing a dividend of 4.6% in a stagflationary environment, SSE is not to be sniffed at. 29 years of consistent dividends too!
Fundamental - Furthermore, demand from UK households is not receding from here. Same for sustainable energy & ESG investment.
Fundamental - Price to earnings is reasonable at ~7.6, unlike many other companies on the market.
Fundamental - SSE's standard mix has 55% renewables, with 40% from natural gas. The average UK provider offers 40% renewable, 38% gas and 16% nuclear. They're one of the best in a bad worldwide bunch.
Targets - Initial target would be a 200% move to £3,300. Should the energy really be 'cooking on gas', we may see it reach the £5-10k top channel (in green) after the coming 5 years.
Targets - Any pullback to the 50 EMA is to be bought (~£1,475 and rising).
WHAT COULD BE BEARISH
Fundamental - Sold off on news of a potential windfall tax on oil & gas producers. As of today, I would rate the chances of that passing or affecting SSE as unlikely, despite the political pressure. Even if implemented, it is perhaps more likely to stunt BP and Shell's progress than a "greener" company like SSE.
Fundamental - Businesses like SSE are needed to support households and also shift to a greener future - being one of the biggest investors in green energy in the country. Unless those in charge wish to undo all their promises in recent years, I'd rate the chances of this impacting SSE as low.
Technical - Down nearly 8% for the day and with other more risky assets selling-off, SSE may still stutter (even if downside limited from here).
Technical - Stop loss would be £1,285 which would create a new low and a 27% decline
SUMMARY
Overall, this seems like one of the biggest no-brainer investments out there. Relatively low-risk, relatively high-reward.
Dividend - Check. ESG - Check. Inflation-proof - Check. Value - Check. New ATH - Check.
Absolutely long-term bullish on SSE, although I expect a a few weeks of sideways action to settle on top of the prior all-time high to call it support. Today SSE is a solid purchase and I expect will remain a good time to begin a position, inspite of the market & political risks identified above. Let's keep an eye on this one in the years ahead. Thanks for reading!
Entry to go long? (1443 GPX)Hi guys. Im very new to trading and investing using a demo account at the moment. Im trying out some technical analysis and have an interest to invest when im confident. Here is an idea I have for a long term investment for SSE. Im confident we will see a continuation in the bullish trend for SSE and Equinor following their joint venture project, Doggerbank wind farm on the North East coast. Its due to undergo phase 1 of 3 construction phases this year (2021) and will be the largest offshore wind farm in the world when completed, with a lifespan of 25 years. (I only wish I invested sooner, when I first researched the development back in mid 2020)
This analysis is to just find the best entry position. We can already see a bull trend, that I expect to continue. Using the fibonacci retracement, I think we will see a pull back to a more desirable entry position at the 38.2% level (1443 GBX), this is backed up by a previous level of support (highlighted along the green horizontal line). In addition the relative strength index is nearing the 30% level, at which point my entry point will be reached, and the bull will continue. Could it be worth placing a limit order at the 1443 level? or could we already be at the best point of entry? Would appreciate any thoughts on this or ways I could improve as like I said im very new and still learning.
P.S. I do not claim to be an expert in anyway, trade at your own risk.
Bear flag pattern wi1d SSE chart following market drop in March 2020. Bear flag appearing on the 1 day chart which may indicate further decline in the coming weeks or months. Currently finding resistance at 1247, failing to break above the 1247 the next key level of resistance at 1358. Fail to break above the 1247 or 1348 may result in a drop with next support levels at 1147 and 1050. Break below 1050 will confirm the bear market trend with a long term low target at 812-820.
SSE - Electrifying potential gainsBuy SSE (SSE.L)
SSE plc is engaged in producing, distributing and supplying electricity and gas, as well as other energy-related services to homes and businesses in Great Britain and Ireland.
Market Cap: £13.35Billion
SSE broke above resistance on a move above 1237p back in October. The shares have since corrected to retest the new support and now appear to be attracting fresh buying interest. The close above the 10EMA and the completion of a bullish flag suggests that more upside is likely in the short term.
Stop: 1223p
Target 1: 1330p
Target 2: 1477p
Target 3: 1625p
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