Ameren Corp is a utility company based out of St. Louis, Missouri. The company delivers electricity and natural gas to central and eastern Missouri as well as southern Illinois. Electricity demand is expected to grow at a steady rate, especially with higher demand from trends like electric vehicles and increased use of electronic devices. Therefore, stable utility businesses like Entergy are poised to grow in the long term.
The 10-year monthly chart for Ameren Corp shows a steady uptrend with regular pullbacks. The level of 74 has proven to be an essential support zone in the past couple of years. The most recent pullback saw the price drop around 18%. However, the price has bounced back up from close to the bottom of the long-term trend after going slightly below the 74 support level. The likely price target now is 86. A stop-loss can be placed below the bottom of the long-term trend at 69.
This trade has been entered into our portfolio at the prices that follow. Entry price $72.61. Stop-loss 20% below at $57.96.Take profit at the top of the long term trend at $90.94 with a potential profit of 35%.