Xcel Energy (XEL) Analysis Today 09/07: XEL Forex Signal

(MENAFN- Daily Forex) Long Trade Idea

Enter your long position between 66.64 (the lower band of its horizontal support zone) and 67.83 (yesterday's intra-day high).Market Index Analysis

• Xcel Energy (XEL) is a member of the NASDAQ 100 and the S&P 500 .
• Both indices are near record highs, but trading volumes during sell-off have increased, suggesting a potential breakdown of the uptrend
• The Bull Bear Power Indicator of the NASDAQ 100 shows a negative divergence, and half of a head-and-shoulders pattern, a reversal chart pattern.

Market Sentiment Analysis

Equity markets continue to assess the latest round of tariff news and weigh it against the initial market shock of April. The impressive V-shaped recovery during the second quarter now faces more uncertainty against the backdrop of high inflation, higher-than-expected interest rates, and a cooling economy. Recent comments about a tariff-related inflation spike and comparing them to the risk of a meteor strike or another pandemic show the economic disconnect of current policy, which adds to the risks of a third-quarter correction Energy Fundamental Analysis H2

Xcel Energy is a US-regulated electric utility and natural gas company with four subsidiaries serving Colorado, Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Texas, and New Mexico. It is also a major player in the green energy transition.

So, why am I bullish on XEL despite its recent correction?

XEL presents an attractive defensive portfolio addition with signs of a sustained technical breakout. It has some balance sheet issues and has underperformed in return on invested capital, but I believe its outlook is much brighter than its share price suggests. Its dividend, which increases by over 6% per year, adds an incentive to hold Xcel Energy. I predict market outperformance during the third quarter, especially if equity markets enter a correction.

Metric	Value	Verdict
PE Ratio	19.87	Bullish
PB Ratio	1.97	Bullish
PEG Ratio	2.69	Bearish
Current Ratio	0.80	Bearish
ROIC-WACC Ratio	Negative	Bearish The price-to-earning (PE) ratio of 19.87 makes XEL a considerably cheap stock. By comparison, the PE ratio for the S&P 500 is 28.75. The average analyst price target for XEL is 75.06. It suggests reasonable upside potential from current levels Energy Technical Analysis Today's XEL Signal The XEL D1 chart shows price action at a significant horizontal support zone. It also shows a breakout above the 38.2% Fibonacci Retracement Fan level. The Bull Bear Power Indicator is bearish but has improved and is flirting with a bullish crossover. The average trading volumes during rallies are higher than during selloffs. XEL advanced while the S&P 500 corrected, a bullish confirmation. My Call H2 I am taking a long position in XEL between 66.64 and 67.83. Xcel Energy trades at a strong horizontal support zone with candlestick pattern confirmation. It also completed a significant breakout, ending its bearish stance. Therefore, I can forgive select balance sheet issues, as XEL has attractive upside potential, especially in a defensive market. I will buy the dips moving forward. XEL Entry Level: Between 66.64 and 67.83 XEL Take Profit: Between 73.00 and 75.02 XEL Stop Loss: Between 64.29 and 65.43 Risk/Reward Ratio: 2.71 Ready to trade our free signals ? Here is our list of the best stock trading platforms worth checking out.

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