Hey, World! I hope you’ve been sensational. I have missed you all! I am headed down to my hometown of Statesboro, GA this weekend to see my Dad and family. Should be an adventure; about a seven hour drive, not too bad.
Energy Stock
I was reviewing the energy sector today and came across NRG Energy (NRG). This bad boy was a ‘rocket ship’. In mid March, NRG broke through the strong resistance that it once broke through in late October 2013. The interesting thing is, back almost one year ago you got a white candle, followed by a black candle.
Well, same thing happened on October 25, 2013 then October 28, 2013 and on March 13, 2014 then March 14, 2014, but finally the breakout held in March. Now the stock has retraced its entire bullish wave to come back to $29.00 and what candle happens to form there? Yep, my favorite one! A one white solider on August 19, 2014. I also have a longer-term bullish trend angle that connects from the July 2013 triple bottom.
Good Risk:Reward
I love this trade for two main reasons.
Risk:Reward is impeccable and the candle patterns that are shaping up look great! If NRG moved bullish, above $29.93, stop could be placed at about $28.89, about a $1.00 risk, with an ultimate target of $37-ish. This trade honestly could take three to four months to play out, but with a 1:7 Risk:Reward ratio this is a hard one to pass up.
Plan your trade and trade your plan folks!
