Waiting For Dominion’s Earnings Report

On Friday, before the US opening bell, the Dominion Energy Inc (NYSE: D) will be delivering their 2020 Q4 earnings results. The current expectation for the EPS is on the lower side, at $0.76, when for the same period last year, the EPS came out at $1.18. Although Dominion Energy, which is a US utility company, supplying households with electricity, is believed to show a lower EPS, the company might still remain attractive for investors, due to stable dividend pay-outs. Also, because during most of 2020 people have spent their time in lockdown at home, that might have raised the household electricity consumption as well, possibly boosting total revenue.

The technical picture of D shows that from around mid-January, the stock continues to get squeezed, while trading between two of its short-term tentative lines, an upside one, drawn from the low of January 15^th and a downside one, taken from the high of January 27^th. As long as the share price remains between those two lines, we will take a neutral approach.

If D manages to break through the aforementioned upside line and then drop below the 72.63 hurdle, marked by the current lowest point of this week, that may increase the stock’s chances of sliding further. That’s when we will aim for the 72.13 obstacle, or even the 71.25 hurdle, marked by the low of January 22^nd. If there are still no new buyers in sight, the next potential target could be at 70.55, which is the lowest point of January.

The RSI and the MACD are currently pointing slightly to the downside. Also, the RSI is fractionally below 50 and the MACD, despite being above zero, runs below its trigger line. It seems that the two oscillators are somewhat in support the idea of staying neutral for now.

If the share price pops above the previously-discussed downside line and also rises above the 74.13 barrier, marked by the current highest point of February, that might invite more buyers into the game, potentially opening the way for further advances. D could then rise to the 74.47 zone, or even to the 75.47 hurdle, marked by the highest point of January. The stock may stall there initially, however, if the buying continues, the next possible target could be at 76.76.

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