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The National Grid share price is down by 2 per cent in today’s trading session. Today is also the second consecutive day that the share price is dropping. However, looking at the past few weeks’ performances, the National Grid share price has been aggressively bullish.
Part of the reason we have seen the share price continue to rise in the past few weeks is due to its recent announcement of a plan to invest £54bn ($65bn), which will go into upgrading its network.
According to reports, the investment will see the company add 50 gigawatts of offshore wind by 2030. The upgrade will also be able to provide capacity for an additional 23GW. According to data, the upgrades will see the company able to meet almost a third of the current peak electricity demand. It will also be the biggest investment in the UK since the 1960s that is aimed at the energy sector.
With rising gas prices around the world, and especially in the UK, the National Grid system is expected to play a crucial role in the coming months, especially in the winter later this year. Therefore, my analysis will focus on the long-term National Grid share price prediction.
Looking at the chart below, we can see the past two days have been aggressively bearish. We can also see that, since the prices set a new monthly price high of 1141 on July 18, the share price has been falling drastically, losing almost 6 per cent of its value. However, the larger trend shows that prices are still in a bullish trend.
Therefore, my National Grid share price expectation is for the price to recover in the next few trading sessions. There is a high likelihood that we will see prices trading above the 1141 price level again. However, should the prices fall below the 1016 support level, then my bullish analysis will be invalidated. It will also likely mean a bear move.
This post was last modified on %s = human-readable time difference 15:37