The company that operates as an energy and energy services provider that offers physical delivery and related services for electricity and natural gas primarily in the south-central United States, OGE Energy Corp. (NYSE: OGE) seems to be getting ready for a surge as per its latest charts.
Bullish Indications
#1 Consolidation Area: The daily chart shows that the stock has been trading within a range for the past several months. This indicates consolidation. The consolidation area is marked as a pink color rectangle in the chart. Once a stock breaks out of the consolidation area, it generally indicates bullishness.
Daily Chart – OGE
#2 Trading Above MAs: The stock is currently trading above both its short-term moving average of 50-day SMA and the long-term moving average of 200-day SMA, which implies that the bulls are currently in control. This is a possible bullish sign.
#3 Bullish Stoch: The %K line is above the %D line of the stochastic in the daily chart, indicating possible bullishness.
#4 Bullish RSI: The RSI is above 50 and moving up in the daily chart. This is a possible bullish sign.
#5 Formation of An Ascending Triangle Pattern: The weekly chart shows that the stock has been forming an Ascending Triangle pattern. An Ascending Triangle pattern is a bullish pattern and is marked on the chart in purple color. Once the stock breaks out of the ascending triangle pattern, it is a possible bullish indication.
Weekly Chart – OGE
#6 Bullish MACD: In the weekly chart, the MACD line is above the MACD signal line, which indicates possible bullishness.
#7 Bullish RSI: The RSI is above 50 and moving up in the weekly chart as well, indicating possible bullishness. The stock is also trading above its 50-week SMA, indicating that the bulls are gaining control.
#8 Bullish ADX: The ADX line has currently started to move up from below –DI and +DI lines. The +DI line is also currently above –DI line. This indicates possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for OGE is above the price of $35.00.
TP: Our target prices are $40 and $45 based on the breakout from the Ascending Triangle pattern.
SL: To limit risk, place a stop loss near $31.70. Note that this stop loss is on a closing basis.
Our target potential upside is 14% to 29% in the next 3-5 months.
For a risk of $3.30, the target rewards are $5.00 and $10.00. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers nearly 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the ascending triangle pattern. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in its sector.
Happy Trading!
— Tara
This is the #1 Stock to Buy for the AI Tidal Wave [sponsor]Marc Chaikin warned people about NVDA before its 2023 bull run - now he's naming his next pick or the AI tidal wave. Learn more here.