Utility company NRG Energy runs in to several forms of resistance
Texas electricity supplier NRG Energy (NYSE: NRG) has been lagging the utilities sector and the overall market so far in 2019 and now the stock is running into a couple of different forms of resistance. The stock is downright at 10% since the beginning of the year while the S&P is up almost 19% and the utilities sector is up almost 17%.
If the stock is going to turn things around and do some catching up, it is going to have to break through its 50-day moving average as well as the $36 level. We see on the daily chart that the $36 area acted as support back in December and then the stock fell below that level in May. The stock danced around it for a few days before dropping solidly below $36. When it attempted to move back up in June, the area acted as a resistance.
It is also worth noting that the daily stochastic readings are in overbought territory and just made a bearish crossover.
The Tickeron Trend Prediction Engine generated a bearish signal for NRG Energy on July 8. The signal showed a confidence level of 90% and past predictions have been successful 82% of the time. For this signal to be considered successful, the stock will need to drop at least 4% within the next month.
In addition to the technical resistance, the fundamentals for NRG are pretty bad. Earnings fell 62% in the most recent quarter, sales have declined by an average of 10% per year over the last three years, and the company’s ROE and profit margin are below average.
NRG in downward trend: price dove below 50-day moving average on July 15, 2025
NRG moved below its 50-day moving average on July 15, 2025 date and that indicates a change from an upward trend to a downward trend. In of 45 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for NRG moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 55 similar instances where the indicator moved out of overbought territory. In of the 55 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on July 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on NRG as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for NRG crossed bearishly below the 50-day moving average on July 17, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NRG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NRG broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NRG advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NRG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NRG's P/B Ratio (6.676) is very high in comparison to the industry average of (1.710). P/E Ratio (6.068) is within average values for comparable stocks, (23.490). Projected Growth (PEG Ratio) (2.418) is also within normal values, averaging (2.640). Dividend Yield (0.022) settles around the average of (0.069) among similar stocks. P/S Ratio (0.555) is also within normal values, averaging (3.122).
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General Information
a company which produces, sells and delivers energy products and services
Industry ElectricUtilities
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