SRE) shows bearishness; What’s next?

Sempra Energy stock (SRE) has been under the control of sellers for the past few months, gradually declining from its peak at $175 and eroding more than 18% of its previous gains. Furthermore, a sequence of lower highs and lower lows are shown on the chart, suggesting the dominance of bears. 

The price action shows that SRE stock is now in a corrective phase and testing the lows in the past trading sessions. Furthermore, the stock is trading below its 20-day EMA and could not escape the hurdle of $150, showing bearishness on the charts. According to the stock’s technical analysis, multiple analysts have assigned a neutral rating to the stock. Currently, the stock is trading close to the demand zone around $135, which has served as a support level with multiple instances of price bouncing off it.

Sempra Energy serves a substantial customer base and is recognized as one of the largest utility companies in the United States. The company is involved in the distribution of natural gas and electricity in Southern California, and it holds an 80% ownership stake in Oncor, which operates as a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric, both subsidiaries of Sempra Energy, distribute gas to more than 20 million customers, while Oncor serves over 10 million customers in Texas.

Sempra Infrastructure partners, of which Sempra holds controlling ownership, is responsible for owning and operating liquefied natural gas (LNG) facilities across North America. Additionally, Sempra Infrastructure partners also manage infrastructure assets in Mexico.

At press time, SRE stock was trading at $146.22 with an intraday gain of 0.72%, showing a positive outlook in the last trading session. Furthermore, the intraday trading volume increased by 2.67% to 1.379 million, and the market cap is $46.009 billion.

Will SRE Stock Stabilize Above $150

On the daily charts, SRE stock has formed a descending triangle pattern, characterized by multiple rejections from its upper trendline. This pattern indicates that buyers have struggled to gather sufficient momentum and break through the resistance that has been in place for several months. Buyers have encountered challenges, while sellers have remained persistent in establishing short positions, further extending the downtrend in the stock.

SRE stock price is below the 50% Fib level and has been underperforming in the past trading sessions. Moreover, a firm conviction arose when it got rejected from the 50-day EMA last week and reinforced the bearish sentiment and provided confirmation of the prevailing downtrend.

Short-term Chart showIng Consolidation

On the 4-hour chart, SRE stock has stayed below $150 and is trading in a narrow congestion zone. Additionally, the stock faced resistance at the 50-day EMA, and the candle closed with a wick formation in the last session, suggesting selling pressure and potential continuation of the downtrend.

The RSI curve is floating near 50 in the neutral range, forming a positive crossover, and indicates buyers’ accumulation in the last trading sessions.

The MACD indicator has begun to form green bars on the histogram and shows a bullish crossover, indicating a positive outlook on the charts.

Conclusion:

Sempra Energy Stock (SRE) is in a correction phase and trading below the key moving averages, showing bearishness on the charts.

Technical levels

Support Levels: $136

Resistance Levels:$160 and $175

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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