NextEra (NEE): Big base potential

Question: What is the technical outlook for NextEra (NEE)? I think you might have mentioned this on a call... Thanks.

Yes, we have been watching NextEra Energy Inc. (NEE) within the Utilities sector with our eyes on a potential big base.

A decisive rally above 86.10–87.53 (pattern neckline and recent spike high) is needed to confirm this bullish setup and suggest further upside beyond the 2022-2021 peaks at 91.35-93.73 toward 100.67 (100% extension of the October 2023-October 2024 rally projected from the April 2025 low) and then 110 (pattern count). The bigger upside projection near 124 aligns with the 161.8% extension.

Until that upside breakout occurs, holding chart support at 79.38-78.46, which is backed up by rising 26- and 40-week moving averages (WMAs) at 77.35-74.72, would keep the bullish backdrop intact.

NEE is stabilizing off its 2024 and 2025 YTD lows relative to the S&P 500 (SPX). Sustaining the recent push above the 13-, 26-, and 40-WMA vs. the SPX would support the bullish case and suggest upside potential to relative resistance near the 2024 peaks and the declining 200-WMA.

Chart 1: NextEra Energy (NEE) (top) and relative to the S&P 500 (bottom)