Edison is one of the largest utility company in the US. It primarily serves customers in the New York area through 5 subsidiaries. The company provides steam, electricity, and natural gas services to customers in south-eastern New York and some parts of New Jersey. The company also has substantial investments in renewable energy. It is, in fact, the second-largest owner of PV solar capacity in the US. The utility business has high barriers to entry, rising demand in areas like New York with population growth, and regulatory guidelines that allow companies to raise their rates to account for rising costs. Therefore, the future prospects of Consolidated Edison are bright.
The long-term monthly chart for Consolidated Edison shows an almost 10-year long uptrend from 2010 till about 2020. Starting February 2020, prices dropped by more than 35% before ranging between the $70-$80 price bands. Historically, the $69 level has acted as s support. The price is currently trending up from this support zone and the bottom of the long-term trend. The next likely price target seems to be $84. A stop-loss can be placed below the $69 level, somewhere near $68.
This trade has been entered into our portfolio at the prices that follow. Entry price $71.84. Stop-loss 15% below at $60.80.Take profit at the top of the long term trend at $96.65 with a potential profit of 35%.