Energy firms are having a bumper earnings season, much to the delight of their shareholders (hard-pressed consumers, not so much), writes Ian Murphy of MurphyTrading.com.
As of Friday, the energy sector has been the best performer in the S&P 500 (SPX) based on earnings for Q4/2022.
Source: Refinitiv
Entergy Corporation (ETR) generates and distributes electricity in the US south, so it was no surprise to see the stock setting up for a daily swing trade on Friday afternoon.
All the required signals were present (have a look at the videos if you are not familiar with the strategy), and conveniently the price closed almost exactly on the -1ATR line, meaning targets are also on the lines. As always, the initial protective stop is 0.5ATR below the low of the trigger bar, so it’s sitting at $102.45 (not shown).
A word of caution, earnings are expected on Thursday before the opening so the entire position (or at least ⅔ of it) should be closed out before then.
Learn more about Ian Murphy at MurphyTrading.com.
