Pinnacle West Capital is a holding company that owns utility companies, Bright Canyon Energy and Arizona Public Service (APS). APS powers the city of Phoenix and other areas in the state, comprising of 1.3 million customers. Pinnacle West’s subsidiaries get substantial power from solar energy. The electricity demand is projected to grow at a steady pace, and the long-term prospects of utility companies like Pinnacle West are strong.

The long-term monthly chart for PNW shows a clear and consistent uptrend with two major retracements towards the end of 2017 and in early 2020. The price has stayed within the long-term trend lines throughout the decade. Post the March 2020 drop, and the price has managed to close above the bottom trend line every month. Currently, the price is bouncing up from the bottom after falling from a high of $91. It now looks set to retest that level. A minimum stop loss can be placed below the bottom trend line, at around $72.

This trade has been entered into our portfolio at the prices that follow. Entry price $76.55. Stop-loss 15% below at $57.96. Short to medium take profit target placed at the top of the long-term trend at $104.47 with a potential profit of 36%.