This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

We are under 2 weeks to the US Presidential Election.

Things are heating up and turning bizarre.

According to The Guardian, Elon Musk had announced a daily giveaway of $1m to get US citizens to sign a petition supporting the First and Second Amendments, and voting in the key battleground states.

Signing the petition is also necessary for anyone to attend Elon Musk’s town hall events.

This could have a rippling effect on the US stock market, because this giveaway could induce more voters to vote for Presidential candidate – former President Donald Trump.

Due to a likely increased in volatility, you may want to be a little more defensive.

And this week’s stock pick, Xcel Energy, is in the defensive sector of utilities.

Brief History of Xcel Energy

Source: xcelenergy.com

Xcel Energy is a utilities company, selling electricity and natural gas.

Founded in 1909, its business took off almost immediately.

Through a series of acquisitions, restructurings, and adaptations, the company grew from strength to strength.

Due to its forward looking management team, the company partnered with Financial Services Information Sharing and Analysis Center to share cyber and physical security intelligence.

Have the work of the company put in bore fruit?

Let’s have a look at its financial health in the next section.

Business Model and Financials

Source: tradingview.com

Let’s examine its financial health by looking at its total revenue (in blue) and net income (in yellow).

Did you notice that its total revenue has been growing every year? The only exceptions are in 2020 and 2023, where total revenue stagnated and declined, respectively.

I don’t think this is a cause for concern yet why?

The company’s net income has been growing every year, despite the drop in its total revenue in 2023.

And that’s impressive!

Being strong financially is important. To traders, the most important thing is whether the market participants are keen on its shares.

Therefore, let’s analyze its share price.

Technical Analysis on Xcel Energy (NASDAQ: XEL)

From the chart above, can you tell the price trend of its shares?

Here’s an easy way to tell – compare the number of blue candles (outlined and solid), to the red candles (outlined and solid). Where the number or blue candles outnumber those in red, the stock is in an uptrend.

So, you can easily tell that the share price of Xcel Energy is in a strong uptrend.

Therefore, you’ll to look out for buying opportunities for a position trade.

To help you determine whether a position trading opportunity is here, you’ll want to refer to the 2 main indicators – the green arrow and Trend Impulse Factor.

The presence of a green arrow under its latest candle tells you that a fresh bullish move is here.

While that’s great, you’ll want to pay attention to the color of the bar of the Trend Impulse Factor.

Here, its bar isn’t dark green in color, suggesting that the bullish momentum might not last.

Within 1 minute, you can safely conclude that the time to buy the shares of Xcel Energy for a position trade isn’t ripe yet.

There’s no need for you to spend time plotting your support and resistance, trendlines, and more.

If this stock isn’t ripe for a position trade, why did I share it?

In my opinion, there’s a good chance of the timing to buy its shares for a position trade appearing soon. You’ll want to keep it in your watchlist.

Conclusion

Source: unsplash.com

The stock market could turn more volatile in the coming days as the US Presidential elections draw nearer.

It’s thus a good idea to go defensive, at least buying good stocks in the defensive sector such as Xcel Energy.

With the support from many market participants, the share price of Xcel Energy is in a strong uptrend.

An analysis using the proprietary indicators show that the time to buy its shares for a position trade isn’t here yet.

Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

Therefore, you’ll want to wait before buying the shares of Xcel Energy for a position trade.

What are your thoughts?

Share your thoughts with me below!