Technical Setups of the Week
Progress Energy (PGN) is one of the largest regulated utilities in the world -- and as such, it may seem like an interesting candidate for a technical play. After all, utilities are renowned for their consistent earnings, recession resistance and high dividend yields -- not exactly an appealing profile for stock speculators. But that doesn't mean that you should ignore this company's technical prowess on its face.
Shares of Progress Energy have been locked in a slow forming ascending triangle pattern since the end of 2009. This bullish pattern looks like it's finally paying off for investors thanks to a breakout in shares last week.
Right now, shares look poised to pull back and test support. If support holds, and if shares start to move higher in response, then it's time to make a move to the long side. I wouldn't recommend buying shares barring that bounce.
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