Bearish Moving Average Cross by National Grid (NGG)

Published on Fri, 01/27/2012 - 11:37
By Robert Cotter in Moving average crossovers, NGG, moving crosses, national grid, nyse:ngg

National Grid (NYSE:NGG) crossed under its 10-day moving average of $48.39 on a volume of 468K shares. This may provide short-term investors a chance for a short position, as such a crossover often suggests lower prices in the near term.

National Grid PLC owns, operates and develops electricity and gas networks. The Group's electricity transmission and gas distribution networks are located throughout the United Kingdom and in the north-eastern section of the United States. They also own liquefied natural gas storage facilities in Britain and provide infrastructure services to the mobile telecom industry.

There is potential upside of 9.0% for shares of National Grid based on a current price of $48.16 and an average consensus analyst price target of $52.51. National Grid shares should first meet resistance at the 50-day moving average (MA) of $48.47 and find additional resistance at the 200-day MA of $49.30.

In the past 52 weeks, National Grid share prices have been bracketed by a low of $43.41 and a high of $52.18 and are now at $48.16, 11% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 0.2%.

By Robert Cotter
rcotter@fnno.com
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