Technically, Dominion Energy has been in a classic bearish trend after it topped out at $88.78 in April 2022. Then a series of lower highs and lows on price saw it halve in value down to $39.25 last October. What happened next caught my attention.Notice how it rallied to the moving average after the low, but this time it managed to close above or on it for eight consecutive weeks. If a first higher low pattern forms here, it could be the first step in a new bullish trend.The -1ATR line on this weekly chart is at around $44.60, so a close below that (not intra-week) would be an exit signal because this will be the initial and trailing protective stop. The stop price also allows us to calculate our risk per share (currently $3.60).
About the Author
Ian Murphy is a full-time trader offering education, analysis, and tools to international equity and futures traders. He trades his own account using trend-following, swing-trading and day-trading strategies. Mr. Murphy is the author of Way of the Trader – A Complete Guide to the Art of Financial Trading which has been published in the US, UK, India, and China.More By This Author:Top Picks 2024: Alexandria Real Estate EquitiesTop Picks 2024: DuolingoWhy Investors Shouldn’t Give Up on AI, “Big Tech” In 2024 (Plus: The Path To S&P 5,100+)
