NextEra Tests $72 Support Amid Oversold Conditions
$NextEra(NEE)$
Drops -1.13% to $79.64: Utility Giant Tests Support at $72 Level
Latest Close Data
NEE closed at $79.64 on December 10, down -1.13% (-$0.91), trading 9.0% below its 52-week high of $87.53.
The stock opened at $80.8 and ranged between $79.50-$81.14 with volume of 13.76M shares (1.24x average).
Core Market Drivers
Utility sector faces headwinds from potential interest rate concerns and energy policy uncertainty.
NEE's defensive dividend yield of 2.78% continues attracting income-focused investors amid market volatility.
The company maintains strong fundamentals with consistent cash flows from regulated operations.
Technical Analysis
Volume increased 24% above average, signaling institutional interest.
MACD shows bearish divergence at -1.34 with DIF below DEA, indicating weakening momentum.
RSI(6) at 17.03 signals severely oversold conditions, while RSI(12) at 31.39 approaches oversold territory, suggesting potential bounce opportunity.
Key Price Levels
Primary Support: $72.07 (key technical floor)
Strong Resistance: $84.67 (immediate ceiling)
Immediate Pivot: $79.50 (today's low acting as near-term support)
Valuation Perspective
Trading at P/E 25.28x vs utility sector average of ~22x, NEE commands premium valuation.
P/S ratio of 6.31x reflects market confidence in regulated revenue streams. Forward P/E of 21.88 suggests modest growth expectations.
Analyst Targets
22 analysts maintain bullish stance with average target of $90.32 (13.4% upside).
Breakdown: 5 Strong Buy, 13 Buy, 7 Hold, 1 Underperform ratings demonstrate solid institutional confidence in long-term utility fundamentals.
Weekly Outlook
Expect consolidation between $79-$82 range. RSI oversold conditions may trigger technical bounce toward $82 resistance.
Break below $79 support could test the critical $72 level, while sustained move above $84.67 opens path to $87+ targets.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
