CenterPoint Energy Inc Stock Forecast

CenterPoint Energy Inc stock upgraded from Buy Candidate to Strong Buy Candidate after Thursday trading session.
(Updated on May 02, 2024)

CNP Signals & Forecast

Mostly positive signals in the chart today. The CenterPoint Energy Inc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $29.19 and $28.23. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 8.01%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Buy

Special Signal Notification

Double Bottom Formation

A buy signal from a double bottom formation was found on Tuesday, April 16, 2024 with a target of $27.96. Despite whether the objective of the signal formation has been reached the stock may continue to perform well.

Support, Risk & Stop-loss for CenterPoint Energy Inc stock

On the downside, the stock finds support just below today's level from accumulated volume at $27.89 and $27.87. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, CenterPoint Energy Inc finds support just below today's level at $27.89. If this is broken, then the next support from accumulated volume will be at $27.87 and $27.22.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $0.340 (1.16%) between high and low. For the last week, the stock has had daily average volatility of 1.72%.

The CenterPoint Energy Inc stock is extremely overbought on RSI14 (77). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Our recommended stop-loss: $28.17 (-4.18%) (This stock has low daily movements and this gives low risk. The RSI14 is 77 and this increases the risk substantially. There is a buy signal from a pivot bottom found 12 days ago.)

Trading Expectations (CNP) For The Upcoming Trading Day Of Friday 3rd

For the upcoming trading day on Friday, 3rd we expect CenterPoint Energy Inc to open at $29.40, and during the day (based on 14 day Average True Range), to move between $28.89 and $29.91, which gives a possible trading interval of +/-$0.506 (+/-1.72%) up or down from last closing price. If CenterPoint Energy Inc takes out the full calculated possible swing range there will be an estimated 3.44% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $27.89, some $1.51 (5.14%) from the current price of $29.40, our system finds the risk reward attractive.

Is CenterPoint Energy Inc stock A Buy?

CenterPoint Energy Inc holds several positive signals and has broken the weak rising trend up. As the stock is also in great technical shape we, therefore, consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 5.086 Strong Buy Candidate Upgraded

Predicted Opening Price for CenterPoint Energy Inc of Friday, May 3, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.