SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. Utilities struggled to start the year but in recent weeks, the group has been climbing within relative strength rankings tables despite a headwind from rising treasury yields. This suggests that investors are starting to rotate capital into traditionally defensive sectors. Nuclear power and alternative energy producer Nextera Energy (NEE), one of the largest utilities in the US, has been one of the stocks leading the sector recovery. Nextera spent nearly all of 2023 and the first part of 2024, a period of over a year, stuck in the red zone of the SIA S&P 100 Index Report, much of that bouncing along the bottom. In the last month, Investors should note that NEE’s last run in the green zone was back in the depths of the 2022 bear market. In the last month, Nextera has climbed 34 spots to 44th place, including a gain of 6 positions yesterday. The shares are up 14.1% in the last month, compared with a gain of 0.7% for the S&P 100 Index. A major breakout is underway in Nextera Energy (NEE) shares. Last fall, a downtrend bottomed out in a big selling climax where the shares plunged on volume, flushing out stops and shaking out weak hands. From October through April, the shares bounced back and built a base for recovery. Accumulation has increased since March, particularly in the last two weeks since NEE completed its base with a bullish Ascending Triangle breakout. A measured move suggests next potential upside resistance may appear near $82.00, followed by the previous peak near $88.00.
After bottoming out in October, Nextera Energy (NEE) shares rebounded through the end of 2023 and the start of this year, but accumulation has really accelerated in the last six week. At the start of April, NEE completed a bullish Double Top breakout and has not looked back, rallying from near $55.00 toward $75.00 without even a 3-box correction along the way. Potential upside resistance may appear near $79.10 or $94.50 based on horizontal counts, or $83.95 and $89.10 based on previous highs. Initial support appears near $68.85 based on a 3-box reversal.
With a perfect bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, NEE is exhibiting short-term strength across the asset classes.
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