National Grid stock forecast: Downside risk grows as price nears key support after latest drop

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National Grid drops 1.13% to GBX1,202

Highlights

NG/GBX trades above short- and medium-term moving averages but remains below the long-term trend indicator.
Momentum indicators confirm strong buying pressure, but multiple signals show the asset is currently overbought.
The projected trading range for the next 2 to 3 days is GBX1,180 to GBX1,231, with immediate support at GBX1,196 and resistance at GBX1,231.

Buy signals persist as intraday momentum meets overbought warnings

On the hourly chart, NG trades above the MA-20 at GBX1,198 and the MA-50 at GBX1,181, but remains below the MA-200 at GBX1,235. The Ichimoku Kijun at GBX1,196 acts as the nearest support. MACD and ADX both signal buy, and the Awesome Oscillator supports the upward momentum. RSI is elevated at 69.02, while both CCI and Stochastic RSI are also showing overbought conditions, and Bull/Bear Power reflects ongoing buyer dominance intraday. The session closed near today's low with a notable gap and moderate volatility.

Range-bound outlook as consolidation caps near-term direction

Looking ahead to the next 2–3 trading days, price action is expected within a GBX1,180 to GBX1,231 volatility band relative to current levels. The baseline scenario is continued consolidation between immediate support at GBX1,196 and resistance near GBX1,231. If NG breaks above resistance, a move higher may develop; however, a close below GBX1,196 could accelerate the retracement toward the lower end of the expected range.

Anton Kharitonov, expert at Traders Union, sees National Grid trading in a narrow band, with limited momentum above key supports but still capped by long-term resistance. He notes that indicators show overbought conditions and buyer dominance intraday, yet price action remains vulnerable below the GBX1,231 resistance. The analyst is cautious about upside follow-through unless a clear breakout occurs. "Base case remains consolidation between GBX1,196 and GBX1,231; until we see a strong move above resistance, I prefer a defensive stance."

Earlier, analysts noted that National Grid’s stable dividend policy and improved earnings outlook were supporting a generally constructive technical view. The latest price action reinforces those findings, with overbought signals and narrowing volatility bands highlighting GBX1,196 as a key level to monitor for breakouts or deeper pullbacks in the near term.

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.