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NextEra Energy Set to Power Up

NEE broke above a key downtrending resistance level, completing a bullish continuation pattern


NextEra Energy (NEE) — On Wednesday, the Federal Open Market Committee (FOMC) released its monetary policy statement and an updated version of its economic projections, and the take-home message was: Get ready for an era of slow economic growth accompanied by low interest rates. Here’s a brief rundown:

— As expected, the Federal Reserve will taper its quantitative easing (QE) program by an additional $10 billion to $35 billion per month.

— It will continue to reinvest the money it receives from the maturing Treasuries and mortgage-backed securities it currently holds.

— The Fed lowered its top-end 2014 GDP estimates from 3% to 2.3%.

— Short-term interest rates are going to remain low for an extended period of time.

Given this news, traders are likely to turn once again to stable, high dividend paying companies like utilities. NEE is one way to take advantage of this shift on Wall Street. In addition to a solid 3% dividend yield, the stock just broke above a key downtrending resistance level, completing a bullish continuation pattern.

This is just the latest in a string of bullish breaks that have defined NEE’s long-term uptrend. If the stock continues to move within this same uptrend, it could easily climb to $105 or above within the next month.

NEE Chart
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Article printed from InvestorPlace Media,

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