NiSource (NI) Targets 27% Decline

Conclusion, Investment Implications, Strategy

NiSource Inc. (NI) appears to be resuming its February decline following five months of sideways investor indecision. A sustained decline below the $22.80 area would help to confirm this and target an additional 27% decline to $16.00 per share. This is an Asbury Momentum idea.

Analysis and Rationale

NiSource Inc. (NI), an energy holding company, operates as a regulated natural gas and electric utility company in the United States. The company operates in two segments, Gas Distribution Operations and Electric Operations. It provides natural gas service and transportation for residential, commercial, and industrial customers; generates, transmits, and distributes electricity; and wholesale and transmission transaction services. It serves approximately 3.5 million natural gas customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts; and 472,000 electricity customers in the northern part of Indiana. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1912 and is headquartered in Merrillville, Indiana.

Chart 1 below plots MI daily since January, highlighting (in red) its Aug 26th breakdown from more than 5 months of sideways investor indecision. This breakdown, which indicates the larger February decline is resuming, targets an additional 27% decline to $16.00 per share that will remain valid as long as the lower boundary of the indecision area, currently at $22.80, loosely contains price on the upside as overhead resistance.

Chart 1

Table 1 below shows that, considering the aforementioned downside target and a protective stop placed above the $23.08 area, a short entry price of $22.04 would provide a 1:5.8 risk/reward ratio (risking $1.00 to make $5.80) with an initial risk of 4.7%.

Table 1

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NiSource (NI) Targets 27% Decline

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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NiSource (NI) Targets 27% Decline

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models