National Grid shares drop nearly 2% after strong earnings met with selling pressure

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National grid slips 1.75% today

Highlights

National Grid posted a more than twofold increase in statutory pretax profit to £1.73 billion for the half-year ending September 2026.
The Board approved a 4% interim dividend increase and lifted full-year earnings guidance after record £6.7 billion capital investment.
Shares of National Grid trade near GBX1,263 with strong upside momentum and an expected five-day range of GBX1,228 to GBX1,297.

Profit and guidance upgrades support sentiment amid selling pressure

National Grid reported strong half-year results for the period ending September 30, 2026, with statutory pretax profit more than doubling to £1.73 billion and record capital investment reaching £6.7 billion. Underlying operating profit and earnings per share rose 13% and 22%, respectively. The Board approved a 4% interim dividend increase, to be paid in January 2027, and raised full-year earnings guidance, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes that National Grid’s decline today despite strong results signals growing downside risk. He sees technical strength above moving averages but remains wary of overbought momentum signals and the gap-down session. The fundamental backdrop is solid, yet persistent selling pressure and overheating indicators raise red flags for aggressive buyers. Kharitonov highlights the risk of mean reversion if volatility persists. "The recent profit surge may already be priced in, so I urge caution and remain defensive until support near GBX1,262 is retested convincingly."

Viktoras Karapetjanc, expert at Traders Union, sees the bullish structure as firmly intact after record profits and rising guidance. He emphasizes confidence from the Board’s dividend boost and robust capital investment, calling this a sign of long-term commitment. Karapetjanc expects further upward momentum given technical support and strong earnings. "With the market offering multiple bullish setups above GBX1,262, I see further growth ahead for NG."

Jainam Mehta, market strategist, believes NG’s technical posture favors near-term stability, yet momentum is approaching exhaustion. He notes the volatility band and overbought oscillators may trigger a tactical pause or brief correction. Mehta suggests nimble traders watch for a potential breakout above GBX1,277 or a contrarian entry on pullbacks. "A move outside this narrow volatility band could present asymmetric trading opportunities in either direction next week."

Overbought signals with bullish bias as resistance and support tested

NG is trading above its 20-day (GBX1,218), 50-day (GBX1,172), and 200-day (GBX1,239) moving averages, establishing a bullish short-, medium-, and long-term technical structure. Immediate resistance is near GBX1,277, with support at GBX1,262. A bearish caveat remains with the long-term moving average structure. Momentum indicators like MACD and ADX are both in buy mode. RSI, Stochastic RSI, and CCI are in the overbought zone, indicating overheating risk but not a confirmed reversal. The Bull/Bear Power (BBP) remains strongly positive, and the Awesome Oscillator also confirms upward momentum. The daily action featured a downside gap and intraday consolidation, with volatility at 1.15%.

Earlier, analysts noted that National Grid’s upgraded outlook and sustained technical momentum pointed to a generally positive trend, balanced by overbought risks. With the latest results reinforcing operational and earnings strength amid ongoing consolidation, traders should watch for a decisive move outside the current GBX1,228–GBX1,297 range to determine the next directional shift.

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

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