Entergy Corporation engages in the electric power production and
retail electric distribution operations in the United States. It
operates in two segments, Utility and Entergy Wholesale Commodities. The
Utility segment generates, transmits, distributes, and sells electric
power in portions of Arkansas, Mississippi, Texas, and Louisiana,
including the City of New Orleans; and distributes natural gas. The
Entergy Wholesale Commodities segment is engaged in the ownership,
operation, and decommissioning of nuclear power plants located in the
northern United States; sells the electric power to wholesale customers;
offers services to other nuclear power plant owners; and owns interests
in non-nuclear power plants that sell the electric power to wholesale
customers.
Take a look at the 1-year chart of Entergy (NYSE: ETR) below with my added notations:
ETR has been trending lower for the past 8 months. Over that time,
the stock has formed an important trend line of resistance (blue). Any
(2) points can start a trend line, but it’s the 3rd test and beyond that
confirm its importance. ETR obviously has an important trendline of
resistance, which currently sits right around $70. A break above that
line should mean higher prices, overall, for the stock.
The Tale of the Tape: ETR is currently stuck under a
down trending resistance. A break above that resistance should mean
higher prices for the stock, thus a long trade could be made. Short
traders might look to enter a trade at the resistance.
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