Entergy Corporation (ETR) is a utility company that serves 3 million customers in the southern region of the US. The company has a power generation capacity of more than 25 GW and focuses on Arkansas, Louisiana, Mississippi, and Texas. Electricity demand is expected to grow at a steady rate, especially with higher demand from trends like electric vehicles and the increasing use of electronic devices. Therefore, stable utility businesses like Entergy are poised to grow in the long term.
The long-term monthly chart for Entergy shows a sideways phase for most of the decade. However, the price ran up significantly through 2019 to hit a peak of $135. The COVID pandemic followed, and the prices fell 45% in February and March of 2020. Since then, the stock seems to have found support at the $91 level. The price has recently bounced up from this support zone and now looks poised to retest the $110 level. A stop-loss can be placed below the support level at around $89.
This trade has been entered into our portfolio at the prices that follow. Entry price $ 95.56. Stop-loss 23% below at $73.37.
Take profit at the top of the long term trend at $136.95 with a potential profit of 43%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.
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