August 19 Chart of the Day - NorthWestern Energy

Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.

NorthWestern Energy (NWE) saw its stock pop today on headlines of a merger announcement with Black Hills Energy, but as always, we turn to the chart for the real story.

Price action, not the press release, will ultimately define where opportunity lies and whether this move has lasting strength or is simply a short-term reaction.

We'll review the chart from a price action perspective to identify potential levels of interest in both directions.

Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.

When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame. 

As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.

Since May 2023, we've showcased over 575+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.

Monthly Chart 

On the monthly chart we can see that price has been in an overall down trend since its $80.52 all time highs back in 2020.

With plenty of volatility traders have had much to be happy with while investors seemingly have been disappointed.

This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.

Weekly Chart

On the weekly chart, we can see with much more clarity the overall volatility during the past few years.

But, has the trend reversed with this latest price surge up?  

Possibly, if price can break through some immediate overhead resistance.

That's not to say that price will continue back to fresh highs anytime soon but maybe, just maybe price can break through previous support turned resistance levels.

We can see a change control zone roughly between $54-$57 (long gray rectangle). 

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash through the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Technically speaking, it wouldn't be surprising to see price fade back down towards the change control zone yet again area before making a more permanent trend decision.

It goes without saying though, the only guarantee in the markets is that price cycles.  It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.

Only time will tell for sure what price will do next...

We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.

With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.

So what's next? 

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