MGE Energy, Inc. (MGEE)

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Stock Price History

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Our View

MGE Energy is a holding company for eight subsidiaries. Its main subsidiary is a utility that generates and transmits electricity to customers in the southern Wisconsin area. The subsidiary also distributes natural gas. Utilities are slow growth but highly stable businesses. They enjoy competitive advantages such as exclusive rights to supply power to select districts and long-term contracts with local governments. Long-term prospects of utilities are linked to the overall outlook of the local economies that the serve and the population growth rate, which often tends to be a low positive number.

The 10-year monthly chart of MGE shows a clear uptrend that the stock has been in. The price peaked in February 2020 before falling 19% as the coronavirus pandemic broke out. The price broke an important support level at 66 which had previously acted as resistance.

In April 2020, the stock bounced up from the bottom of the long-term trend and it has risen 42% from its March 2020 lows. More importantly, the price crosses the 66 resistance line in May 2020 and now looks poised to test levels around 80. Stop loss can be placed below the bottom of the long-term trend around 58.  

Data Explained

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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