The Stock Pulse - Feb. 5, 2026

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The Stock Pulse - 05 Feb 2026 - Three bulls EWBC, FANG, and NEE; One vulnerable NRG.pdf Download PDF • 1.80MB

Three bulls: EWBC, FANG, and NEE; One vulnerable: NRG

Three bullish stocks: EWBC, FANG, and NEE; One vulnerable stock: NRG

East West Bancorp (EWBC), Diamondback Energy (FANG), and NextEra (NEE) show bullish technicals, while NRG Energy (NRG) is at risk.

• EWBC is holding a bullish cup-and-handle breakout above 114–110 with upside potential to 148–152.

• FANG is attempting a breakout from a year-long base, with a weekly close above 164 confirming upside toward 194–214 while holding support near 157–154 keeps the pattern constructive.

• NEE is breaking out from a large multi-year base, where sustained trade above 86–88 favors upside to 100, 110, and potentially 124.

• In contrast, NRG is showing signs of a top, with relative weakness versus the S&P 500 and a break below 141–137 risking a move toward 121 and possibly 106 while below key weekly moving averages at 157-159.

East West Bancorp (EWBC): Bullish cup and handle pattern targets 148-152

EWBC is a regional banks stock with a bullish breakout and retest from a late 2024 into late 2025 cup and handle formation. Holding 114-110 keeps this breakout firmly in place with upside potential to 148-152 (100% extension and pattern count). A decisive rally above the 61.8% extension at 117.77 would increase conviction. Rising 13-, 26-, and 40-week moving averages from 112 down to 104 underpin this bullish setup.

Diamondback Energy (FANG): Attempts breakout from a basing pattern

FANG, an oil and gas production stock, is attempting a bullish breakout from an early 2025 into early 2026 bottoming pattern. A decisive rally (weekly close) above 164 would confirm this base and favor upside to pattern counts at 194 and 214 with the early and mid 2024 peaks at 211.96-214.50. Holding this week’s low and rising 200-week moving average (WMA) at 157-154 would keep the immediate pattern bullish. Rising 13-, 26-, and 40-WMAs from 153 down to 146 reinforce this basing pattern for FANG.

NextEra (NEE): Big base breakout with upside potential to 100, 110, and 124

NEE, an electric utilities stock, is breaking out from the big base pattern highlighted in our Straight from the Chart blog on December 12, 2025. Sustaining the rally above 86.00–87.53 (pattern neckline and late October spike high) would confirm this bullish setup and suggest upside beyond the 2022-2021 peaks at 91.35-93.73 toward 100.67 (100% extension) and then 110 (pattern count). The bigger upside projection near 124 aligns with the 161.8% extension. Rising 13-, 26- and 40-week moving averages at 83.50-77.71 support this bullish backdrop.

NRG Energy (NRG): At risk for a mid 2025 into early 2026 topping pattern

NRG, an electric utilities stock, peaked vs. the S&P 500 in May 2025 and shows a bearish divergence against the marginal higher highs for NRG’s absolute stock price into late October. The early 2026 breakdown for NRG vs. the S&P 500 could provide a bearish leading indicator for a break lower in NRG’s absolute stock price. A decisive loss of 141-137 would confirm a mid 2025 to early 2026 top for NRG with the risk to completely fill the weekly upside gap from mid May 2025 down to the gap low at 120.92 and potentially test the pattern count at 106. Until then, the risk is tilted to the downside while below the 13-, 26-, and 40-week moving averages from 157.40-159.37.

Monitor our “Straight from the Chart” blog for more stock and ETF charts

What is The Stock Pulse?

The Stock Pulse provides bullish and bearish stock and ETF ideas

The Stock Pulse highlights bullish and bearish technical setups across common stocks, ADRs, and ETFs. The report emphasizes weekly charts to reduce short-term noise and targets a three-to-six-month investment horizon. We analyze price action and trends from both an absolute and relative perspective. Our relative benchmark is typically the S&P 500. We focus on the technicals, we but encourage investors to evaluate the fundamentals before acting on the ideas presented in The Stock Pulse.

We can categorize these charts as follows:

• Bullish leadership: Bullish absolute and bullish relative trends. This technical setup represents a confirmed bullish trend. It also can indicate a bullish momentum stock.

  • Actions to consider: Buy dips, hold longs, and avoid shorts. 

• Bearish laggard: Bearish absolute and bearish relative trends. This technical setup represents a confirmed bearish trend. It also can indicate a bearish momentum stock.

  • Actions to consider: Sell rallies, hold shorts, and avoid longs.

• Bullish weakening: A bullish absolute trend and a deteriorating to bearish relative trend. The stock has rallied but lags its benchmark. This lack of bullish relative confirmation provides a negative divergence, which is a potential bearish leading indicator for the absolute price chart.

  • Actions to consider: Protect or reduce absolute longs, consider relative shorts, and if aggressive, initialize an absolute short.

• Bearish strengthening: A bearish absolute trend and an improving to bullish relative trend. The stock has declined, but it has dropped less than its benchmark. This lack of bearish relative confirmation provides a positive divergence, which is a potential bullish leading indicator for the absolute price chart.

  • Actions to consider: Protect or reduce absolute shorts, consider relative longs, and if aggressive, initialize an absolute long.

Key indicators

We rely weekly charts – both absolute and relative – with simple weekly moving averages (WMA) and Trend Scores to assess the technical condition of the stocks, ADRs, and ETFS highlighted in this note. In addition, we may also highlight other important indicators and well as provide technical screens.

Weekly moving averages show multiple timeframes on one chart

• The slope of the moving average is more important than whether the price is above or below it

• 13-WMA: Quarterly and tactical trend

• 26-WMA: Half-year and intermediate trend

• 40-WMA: Longer-term trend and similar to the 200-day moving average

• 200-WMA: Long-term or macro trend

Trend Scores

• Trend Score: Ranges from -10 to +10 and incorporates the 13-, 26-, and 40-WMAs. Higher scores indicate stronger trends with prices above rising WMAs. Lower scores indicate weaker trends with price below declining WMAs. Longer WMAs are more heavily weighted.

• Long-term Trend Score: Ranges from -20 to +20 and includes the 13-, 26-, 40-, and 200-WMAs. Higher scores reflect stronger long-term uptrends, while lower scores indicate long-term downtrends. Longer WMAs carry more weight.

Three bullish charts: EWBC, FANG, and NEE

East West Bancorp (EWBC): Bullish cup and handle pattern targets 148-152

EWBC is a regional banks stock with a bullish breakout and retest from a late 2024 into late 2025 cup and handle formation. Holding 114-110 keeps this breakout firmly in place with upside potential to 148-152 (100% extension and pattern count). A decisive rally above the 61.8% extension at 117.77 would increase conviction. Rising 13-, 26-, and 40-week moving averages from 112 down to 104 underpin this bullish setup.

Chart notes:

• EWBC has outperformed the S&P 500 since May 2023. While relative performance stalled in late 2024, the stock is now setting up for a breakout from a late-2024 into early-2026 bottoming pattern that could reassert leadership.

• We established the 100% extension target at 148 by projecting the early-2023 to late-2024 rally from the April 2025 low. This extension count aligns with the cup and handle target at 152.

Chart 1: East West Bancorp, Inc. (EWBC) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

Diamondback Energy (FANG): Attempts breakout from a basing pattern

FANG, an oil and gas production stock, is attempting a bullish breakout from an early 2025 into early 2026 bottoming pattern. A decisive rally (weekly close) above 164 would confirm this base and favor upside to pattern counts at 194 and 214 with the early and mid 2024 peaks at 211.96-214.50. Holding this week’s low and rising 200-week moving average (WMA) at 157-154 would keep the immediate pattern bullish. Rising 13-, 26-, and 40-WMAs from 153 down to 146 reinforce this basing pattern for FANG.

Chart notes:

• FANG has stabilized vs. the S&P 500 since September, moving above its 13-, 26-, and 40-WMAs and then breaking higher from a mid 2025 into early 2026 tactical bottom relative to the broader U.S. equity market. This suggests emerging leadership from FANG.

• FANG is scheduled to report earnings after the market close on Monday, February 23, 2026.

Chart 2: Diamondback Energy Inc. (FANG) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

NextEra (NEE): Big base breakout with upside potential to 100, 110, and 124

NEE, an electric utilities stock, is breaking out from the big base pattern highlighted in our Straight from the Chart blog on December 12, 2025. Sustaining the rally above 86.00–87.53 (pattern neckline and late October spike high) would confirm this bullish setup and suggest upside beyond the 2022-2021 peaks at 91.35-93.73 toward 100.67 (100% extension) and then 110 (pattern count). The bigger upside projection near 124 aligns with the 161.8% extension. Rising 13-, 26- and 40-week moving averages at 83.50-77.71 support this bullish backdrop.

Chart notes:

• We generate the 100% and 161.8% extension targets highlighted above by projecting the October 2023-October 2024 rally from the April 2025 low.

• NEE is stabilizing off its 2024 and 2025 lows relative to the S&P 500. 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 3: NextEra Energy Inc. (NEE) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

One vulnerable stock chart: NRG

NRG Energy (NRG): At risk for a mid 2025 into early 2026 topping pattern

NRG, an electric utilities stock, peaked vs. the S&P 500 in May 2025 and shows a bearish divergence against the marginal higher highs for NRG’s absolute stock price into late October. The early 2026 breakdown for NRG vs. the S&P 500 could provide a bearish leading indicator for a break lower in NRG’s absolute stock price. A decisive loss of 141-137 would confirm a mid 2025 to early 2026 top for NRG with the risk to completely fill the weekly upside gap from mid May 2025 down to the gap low at 120.92 and potentially test the pattern count at 106. Until then, the risk is tilted to the downside while below the 13-, 26-, and 40-week moving averages from 157.40-159.37.

Chart notes:

• While not shown in the chart below the volume advance decline indicator (accumulation), MACD (trend momentum), and RSI (price momentum) failed to confirm the late-2025 price highs, reinforcing the bearish divergence versus the S&P 500.

• NRG is scheduled to report earnings before the market opens on Tuesday, February 24, 2026, which could act as a catalyst for a resolution of this setup.

Chart 4: NRG Energy Inc. (NRG) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

Suttmeier Technical Strategies, LLC (STS) provides financial commentary and market analysis for educational and informational purposes only. We are not registered investment advisors, and nothing published by STS should be considered personalized investment advice, a recommendation to buy or sell any security, or a solicitation to engage in investment activity. All content is impersonal and does not consider your individual financial circumstances. Past performance is not indicative of future results. Investing involves risk, and you should consult with a licensed financial advisor before making any investment decisions. STS or its representatives may hold positions in securities mentioned in our publications. Such holdings are subject to change without notice and do not constitute investment advice.