NEE - NextEra of ⬇️ Price Action

14. Mai 2022

REMAINING REASONS TO BE BULLISH

• Green energy & ESG projects are still top of mind for many investors
  
• We still remain above the 100 week moving average and in the green channel
  
• “Only” trading 26x above earnings
  
• Growing earnings at 8% a year
  
• Paying a modest dividend of ~2%
  
• Not much else I’m afraid…
  

WHY I’M BEARISH

• The weekly RSI has just entered the bull zone
  
• We’re perilously close to crossing below the 100 week moving average and on a declining trajectory
  
• Very much overdue a correction
  
• A normal P/E ratio would be in 15-18 ratio. This would price it back in the 30s.
• Much better value stocks in the energy sector, paying much higher dividends.
  
• NEE have traditionally paid as high as 4% yield going back to the early 2000’s, the decline to 1.6% in December 2021 may yet be “beaten” with an even lower yield this time out. This will likely turn away many savvy investors looking for underpriced value.
  

WHAT I’M DOING

• Definitely NOT buying this stock, not even 30% off all-time highs
  
• Will be wanting for the trigger to confirm in order to enter short in the coming days
  
• First target would be $35, with a terminal target of $18 to come back and retest an important level. This would also coincide with the 0.618 fib off the entire 40 year move.