Iberdrola S.A. (IBDRY): Big base breakout

We received a question on Iberdrola S.A. (IBDRY), an ADR for an electric utilities company based in Spain.

IBDRY broke out from a massive cup and handle big base dating back to mid 2008 earlier this year and has since achieved new highs above the prior peak from November 2007 at 72. This is a longer-term bullish setup.

IBDRY has tested the first target area from 84 to 88, which is 100% extension of the rally from the mid 2012 cup low to the early 2021 handle peak projected from the late 2022 handle low and the upside count for the handle breakout. However, the stock shows longer-term upside potential to 110-114, which is the full cup and handle pattern projection and the 161.8% extension.

Rising 13-, 26-, and 40-week moving averages at 81.11, 77.66, and 75.11, respectively, underpin the bullish backdrop for IBDRY along with a tactical chart breakout point near 78.

Chart 1: Iberdrola S.A. (IBDRY)