CMS Energy Corporation (CMS) CMS Energy is a utility company with three primary businesses. It provides electric and regulated natural gas services to 1.8 million customers in Michigan and provides power to industrial and commercial customers. The group’s CMS Enterprises does wholesale power generation, including contracted renewable energy. The uptick in the US economy that continues to emerge from the pandemic is expected to improve the demand for electricity and help the prospects of utilities like CMS Energy. Longer-term, the utility business looks solid.

The long-term monthly chart for CMS Energy shows a smooth decade-long uptrend with regular retracements. The most significant pullback occurred in early 2020 when prices fell by about 33% and went briefly below the bottom of the long-term trend. However, the trend of higher lows has resumed since then, and the price has most recently bounced up from the bottom of the long-term trend after four consecutive months in the red. A long position can be initiated with a stop loss below the bottom trend line, around $52, and a target price of $68.

Position entered into our long-term tracking portfolio today. The entry point is at $60.25, and the stop loss is placed at $45.77, which is 24% below the entry point. The short-term to medium take profit at the top of the trend is set at $74.48, giving a gain of 23%.