Centerpoint Energy (CNP) is part of the electric utilities group. The defensive utilities sector has been struggling lately, but managed a gain in the face of Monday's market weakness.
Investors may turn to defense if the market weakens further. CNP surged with good volume in mid March and then consolidated with a pennant formation. Also notice that the stock established support with two big bounces around 8.5-9 (October and March). Today's pennant breakout occurred on good volume to signal a continuation of the March surge. The first move was around 2 points (8.7 to 10.7) and a similar move from pennant support would target an advance to around 12.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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