Image Source: Unsplash

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% (as shown by the yellow arrows below), and recently seen trading at around $49 with an average of approximately 6 million 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 at around $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).

About the Author

Ian Murphy is a full-time trader offering education, analysis, and tools to international equity and futures traders. He trades his own account using trend-following, swing-trading and day-trading strategies. Mr. Murphy is the author of Way of the Trader - A Complete Guide to the Art of Financial Trading which has been published in the US, UK, India, and China.

More By This Author: