Entergy Corp. (Friday’s close US$112.65) rallied from US$71.95 in February, 2018, to US$135.55 in February, 2020 (A-B), above a rising 40-week Moving Average (40wMA). In March, 2020, the stock had a major breakdown and fell below its 40wMA (C), but quickly reversed and started a large horizontal trading pattern mostly between US$90 and US$113 (dashed lines).
While in this range, its 40wMA also reversed in early 2021 (D) and supported the recent corrective move at US$100 (E). A sustained rise above US$114-$115 would signal a breakout and the start of a new uptrend. There is good support at the 40wMA near US$105-$107; only a sustained decline below this level would cancel the current upside potential.
Point & Figure measurements provide targets of US$125 and US$140. The large trading range (dashed lines) supports higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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