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.

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Harry Richardson|Expert

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.