Can National Grid stock break resistance as US power infrastructure investment boosts sentiment?

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National Grid jumps 2.3% on Joulent deal

Highlights

National Grid is investing $1.75 billion for a 35% stake in Joulent, expanding its U.S. power infrastructure exposure.
The company is executing a multi-year capital program across UK and U.S. grids to meet rising electricity demand and accelerate energy transition.
Shares trade with bullish bias above key moving averages, with price expected to consolidate between GBX1,223 and GBX1,267 over the next few sessions.

US grid expansion drives growth outlook as investment confirmed

National Grid has confirmed a $1.75 billion investment for a 35% stake in Joulent, a U.S. energy platform focused on power infrastructure development, according to Finance Yahoo. This move expands National Grid's presence within the U.S. market and highlights its active allocation of capital toward long-term energy transition opportunities, directly supporting expectations for growth and network expansion. In addition, National Grid has outlined a long-term capital investment programme covering both its UK and US grid assets to support rising electricity demand and facilitate the energy transition, as reported by Kalkinemedia, reinforcing expectations of future strategic alignment with sector trends.

Mixed signals emerge as overbought momentum meets conflicting indicators

Price action currently sits above the MA-20 (GBX1,228) and MA-50 (GBX1,232) on the H1 timeframe, as well as the MA-200 (GBX1,223) on the daily chart. The Ichimoku Kijun line at GBX1,227 serves as immediate support. The Relative Strength Index (RSI) prints 60.17, indicating higher-than-average strength, while both the Commodity Channel Index (CCI) and Stochastic RSI signal overbought conditions. Bull/Bear Power continues to reflect intraday buyer dominance. In contrast, the Moving Average Convergence Divergence (MACD) gives a strong sell reading, while the Average Directional Index (ADX) and Awesome Oscillator remain neutral. The divergence between bullish and bearish momentum signals creates a mixed technical posture.

Consolidation expected as volatility persists within key support range

Over the next two to three trading days, the price is expected to fluctuate within a volatility band between GBX1,223 and GBX1,267. There is a 73% probability of further upside, with a lower chance of a downward correction. The baseline scenario favors continued consolidation within this corridor, while a break above resistance could carry the price toward the upper range. Conversely, a move below GBX1,227 support would increase the likelihood of a near-term pullback.

Viktoras Karapetjanc, expert at Traders Union, sees National Grid's confirmed $1.75 billion Joulent investment as a clear signal of strategic intent and capital commitment to growth in the U.S. energy sector. He believes the long-term capital investment plan across UK and US grids reinforces the company's alignment with structural trends in electrification and rising demand. Despite mixed technical signals, the fundamental and macro momentum remain constructive. 'As long as price action holds above GBX1,227, I favor further upside given strong institutional positioning and future-oriented strategy,' he says.

Earlier, analysts noted that National Grid's strategic investment in the U.S. energy sector underscored its commitment to long-term network growth, while technical momentum remained mixed. With the current consolidation and prevailing buyer dominance, traders should focus on a potential breakout above the established volatility band as a catalyst for the next directional move.

Source of Data: NG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.