Dominion Energy, Inc. (D) has been attracting some chatter from analysts of late, so I pulled up a chart this week, states Ian Murphy of MurphyTrading.com.
Based in Richmond VA, the firm produces and distributes energy from its nuclear, fossil fuel, and renewable facilities. Paying an attractive dividend of 5.54% (yellow arrows below), and currently trading at $48 with an average of 6m shares changing hands every day, liquidity is not an issue.
Technically, Dominion Energy has been in a classic bearish trend after it topped out at $88.78 in April 2022. Then a series of lower highs and lows on price saw it halve in value down to $39.25 last October. What happened next caught my attention!
Notice how it rallied to the moving average after the low, but this time it managed to close above or on it for eight consecutive weeks. If a first higher low pattern forms here it could be the first step in a new bullish trend. The -1ATR line on this weekly chart is currently at $44.60, so a close below that (not intra-week) would be an exit signal because this will be the initial and trailing protective stop. The stop price also allows us to calculate our risk per share (currently $3.60).
Learn more about Ian Murphy at MurphyTrading.com.
