Why is National Grid stock up 3% today?

Traders Union
All News
Financial News
National grid surges 3.04% today

Highlights

National Grid is investing $1.75 billion for a 35% stake in Joulent, expanding its presence in US power infrastructure.
The company plans over 10 gigawatts of new data center connectivity capacity in the UK and US within five years, alongside a policy to grow its dividend in line with UK inflation.
Shares trade near session highs with bullish technical structure, but conflicting momentum indicators suggest a likely sideways price range of GBX1,230–GBX1,276 in the near term.

Strategic US expansion and dividend plans lift investor sentiment

National Grid confirmed a $1.75 billion investment to acquire a 35% stake in Joulent, a power infrastructure platform based in the US and aimed at supporting increasing energy demand in that region. The company also reported plans to expand data center connectivity with more than 10 gigawatts of new capacity targeted across the UK and US over five years. Policy updates included a commitment to grow the annual dividend in line with UK CPIH inflation, backed by regulated cash flow and balance sheet discipline.

Anton Kharitonov, expert at Traders Union, sees National Grid's rally as vulnerable despite the positive news about the Joulent investment. He observes that while prices have moved above all key moving averages, underlying momentum signals are weak and show clear selling pressure. Mixed oscillator readings and a dominant intraday bearish bias raise doubts about the sustainability of the advance. He notes that the forecast leans heavily toward downside risk, with sellers still in control. "Today’s jump looks overstretched and could be swiftly unwound if the stock fails to hold above GBX1,230," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, views the $1.75 billion Joulent acquisition as a strategic move that reinforces National Grid’s long-term fundamentals. He notes confidence from management’s dividend guidance and the ambitious expansion of power infrastructure aimed at capturing rapid demand growth. Karapetjanc believes the uptrend above key technical levels supports the bullish structure. He states, "With disciplined investments and regulatory tailwinds, further growth is expected for shareholders willing to look past short-term volatility."

Jainam Mehta, market strategist, points to the conflict between the bullish price structure and oversold momentum indicators. He identifies the risk of a mean-reversion pullback but highlights the setup for a potential breakout above GBX1,276 if resistance clears. Mehta suggests tactical traders monitor for divergence-based entry signals near support. "The mixed technical picture presents both fade and breakout trade opportunities depending on short-term price action," Mehta says.

Bullish structure faces momentum conflict amid oversold signals

National Grid is trading above all key moving averages, with the current price at GBX1,253 above the 20-day (GBX1,235), 50-day (GBX1,233), and 200-day (GBX1,223) levels. This alignment signals short-, medium-, and long-term bullish structure, with immediate resistance at GBX1,276 and support at GBX1,252. Momentum signals are mixed: MACD shows strong buy conditions, but the Average Directional Index (ADX) reads as neutral, indicating a lack of clear trend strength. The Relative Strength Index (RSI) is at 45.04 with a sell signal, Commodity Channel Index (CCI) is at -97.88 with a sell signal, and Stochastic RSI at 4.29 and Bull/Bear Power (BBP) at -7.42 both indicate oversold conditions. Sellers currently dominate intraday momentum according to BBP, reinforcing the oversold character. The Awesome Oscillator (AO) is neutral. Today, the stock advanced GBX37 or 3.04% after an upside gap of GBX10.5 (0.86%), now trading near its day high and with intraday volatility at 2.04%. Market tone shows pronounced strength toward session highs, though momentum indicators remain in clear conflict.

Earlier, analysts noted that National Grid's investment in the U.S. energy sector was supporting expectations for long-term growth, while technical indicators showed a mixed outlook. With sellers currently dominating short-term momentum and a majority probability for a downward move in the coming days, traders should monitor GBX1,230 as a critical support level for any shift in price direction.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.