Bull Flag Formation Tests Key Support
The rectangle formation showed strength by forming near long-term highs, a constructive sign of a bullish continuation rather than exhaustion. That strength was further revealed by a new high breakout, which has led to a minor pullback and the formation of the bull flag pattern. Moreover, the pullback that formed the flag successfully tested support near key moving averages, after those averages converged last week, resulting in a sharp new trend high breakout.
The 10-day moving average was successfully tested as support on Wednesday with a low of $93.66, which is currently the low for the flag consolidation. That 10-day average marks the upper boundary of a support zone extending down to the 50-day moving average at $92.66 and rising.
Poised for Continuation into New Highs
NEE continues to display bullish structure and behavior on both short-term and long-term charts and therefore looks poised to continue advancing into new record highs. A decisive advance above Thursday’s high of $98.03 will further confirm the flag breakout and provide further confirmation of the new high breakout that was initiated in February. With the stock already building on its long-term base breakout, such a move would strengthen the broader thesis that NEE remains in the early stages of a potentially larger upside trend.
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