National Grid shares rise around 1.5% as operating profit and dividend policy attract buyers

Traders Union
All News
Financial News
National grid rises 1.43% today

Highlights

National Grid's fiscal 2024 performance reflects stable regulated earnings, with higher operating profit and strong infrastructure investment in the UK and US networks.
Dividend stability is underpinned by robust cash flow and regulated capital spending, sustaining the company’s capacity for further upgrades.
Technicals signal short-term consolidation between GBX1,208 and GBX1,270, with diverging momentum indicators and a high probability of a downward move.

Dividend stability and infrastructure spend sustain positive outlook

National Grid’s performance is underpinned by regulated earnings from its UK and US network operations, as its fiscal 2024 results showed higher operating profit and ongoing investment in infrastructure. The company has maintained or modestly increased its dividend, supported by robust cash generation and recoverable capital expenditure. Its funding and capital structure remain aligned with regulatory requirements, ensuring sustained capacity for infrastructure upgrades and reliable dividend payments.

Anton Kharitonov, expert at Traders Union, takes a cautious view on National Grid’s current move. He notes the bullish momentum above key moving averages but finds technical signals mixed, with MACD positive yet RSI and CCI turning bearish. The company’s solid regulated earnings and stable dividends offer a floor, yet profitability relies on continued regulatory alignment and favorable conditions. Kharitonov highlights the high volatility and probability of a short-term pullback, despite robust fundamentals. "Current signals warn that any breach below GBX1,241 could trigger further downside, so risk management is critical for new positions."

Viktoras Karapetjanc, expert at Traders Union, sees the recent results from National Grid as a signal that its bullish structure remains intact. He points to ongoing infrastructure investment, resilient cash flow, and the company’s progressive dividend policy as key drivers for long-term growth. Karapetjanc emphasizes that the stock’s position above major moving averages increases the probability of further upside. "I expect National Grid to maintain momentum and offer attractive setups for investors seeking stable returns and capital growth."

Sholanke Dele, market strategist, believes short-term sentiment for National Grid is fragile. He notes conflicting technical signals, with volatility near 2% and weak momentum on key oscillators. The probability of a downward move is high, raising caution despite the recent profit advance. "Given the increased risk of a pullback, I’d avoid aggressive entries until the stock confirms a sustained breakout above GBX1,262."

Conflicting momentum as price tests resistance and holds support

National Grid is trading above its 20-day (GBX1,238), 50-day (GBX1,231), and 200-day (GBX1,225) moving averages, signaling a bullish trend across all timeframes. The Ichimoku Kijun at GBX1,221 offers key support, with the near-term resistance at GBX1,262 and support at GBX1,241. Momentum signals are mixed: MACD shows strong buying, Bull/Bear Power (BBP) is positive at 1.44, but RSI is at 47.22 with a Sell forecast, and the CCI also suggests selling. Stochastic RSI and the Awesome Oscillator (AO) are neutral. The stock experienced a 1.43% rise intraday with volatility at 1.93%, trading near session highs, though diverging signals create some uncertainty.

Earlier, analysts noted that National Grid's ongoing infrastructure investments were underpinning operational resilience and supporting investor confidence, despite mixed short-term momentum signals. With the latest earnings reinforcing its financial strength and the technical outlook indicating the need for a confirmed breakout above resistance, traders should closely monitor action near the GBX1,262 level as a catalyst for renewed trend 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.