Duke Energy Corporation (NYSE: DUK), a prominent American electric power and natural gas holding company, has long been a stalwart in the utilities sector. However, recent market conditions have presented significant challenges for the company, and it finds itself navigating through turbulent times. As market volatility and industry headwinds persist, DUK faces short-term setbacks, but its strong foundation and long-term prospects continue to underpin its resilience.
Examining the stock’s daily chart, we’ll analyze the ongoing correction since it reached an all-time high of $166.33 last year. DUK aims for this movement to develop as a corrective Elliott Wave structure known as Double Three. This pattern comprises seven swings, defining its corrective character and targeting a specific level before initiating a reversal.
Lately, DUK experienced a decline, breaching the low from October 2022. This has resulted in an incomplete bearish sequence for the stock that originated from its peak in April 2022. The sequence implies that DUK will undergo a 6th swing bounce in wave ((B)), but it is anticipated to fall short of surpassing the peak reached in January 2023 at $106.4. Subsequently, another downward leg is expected in wave ((C)) of y. This descent should ideally target the equal legs range between $73.9 and $66.2. It is within this area that the stock is anticipated to conclude its correction in wave (II) before initiating an upward trajectory.
Mid-term traders may find the bounce to be a suitable selling opportunity, particularly as the stock appears to be heading into another decline. This strategy is viable as long as DUK remains below $106. On the other hand, investors should keep a close eye on the blue box area at lower levels. Technically, the area is expected to trigger a reaction to the upside and could signify the initiation of a new daily cycle moving in an upward direction.