Atmos Energy is one of the largest natural gas distributors in the US. It serves some 3 million customers across 9 different states. Texas is the largest source of earnings for Atmos. Additionally, the company also has a 5700-mile gas pipeline across important shale gas formation states. Atmos Energy has a strong track record of growing earnings as well as dividends consistently. The demand for energy from gas is also expected to stay strong. Therefore, the long-term prospects of the company look bright.

The Long term monthly chart for Atmos Energy shows a rather clean uptrend that faced pullbacks in 2016, late-2017, and early-2018 and the longest retracement period in 2020. In 2020, the price fell by close to 30%. In February 2021, the price touched the bottom of the long-term trend before bouncing back up. It now looks likely to test the $102-$103 levels. A minimum stop loss can be placed below the bottom of the long-term trend at around $85 level.

Position entered into our long-term tracking portfolio today. The entry point is at $89.67, with the stop loss at $76.50, which is 15% below the entry point. The short-term to medium take profit is at the top of the trend set at $122.12, giving a gain of 36%.