Xcel Energy Rises 1.29% In Two Days As Technicals Signal Bullish Momentum

Xcel Energy (XEL) concluded the most recent session at $73.04, marking a 0.95% gain for the day and bringing its two-day advance to 1.29%, demonstrating near-term positive momentum.
Candlestick Theory
Recent price action for XEL shows consolidation breaking higher. The last three candlesticks formed a minor reversal pattern: a small-bodied candle (2025-09-19) near the $72 support, followed by two increasingly decisive up days closing near their highs. Key resistance is evident at the late-August swing high of $74.26, with immediate resistance forming around the most recent peak of $73.04/$73.35. Significant support is found between $71.14 (late-July low) and $71.84 (recent low), with psychological support near the $70 level established throughout the spring.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment ($69.20, $67.80, and $66.70 estimated averages respectively), confirming an established long-term uptrend. The current price (~$73.04) trading comfortably above all three key averages reinforces this positive bias. The shorter 50-day MA trending above the longer 100-day and 200-day MAs provides further confluence for sustained upward potential. Price consistently finding support near the 50-day MA during August-September pullbacks highlights its dynamic support role.
MACD & KDJ Indicators
The MACD line is likely above its signal line and crossing above the zero line, indicating building bullish momentum after recent consolidation. Concurrently, the KDJ oscillator is potentially transitioning out of an oversold territory (following the September dip below $72) towards the mid-zone. While the K and D lines rising above 50 would suggest strengthening short-term momentum, neither indicator currently signals extreme overbought conditions that might necessitate an imminent pullback, aligning with the recent breakout.
Bollinger Bands
Price has recently moved towards the upper Bollinger Band ($73.20 estimated upper band), following a period of band contraction during mid-September consolidation between $71.80-$72.80. This volatility contraction resolved upwards, a typically bullish signal. Trading near the upper band signifies relative strength, but requires monitoring for potential mean reversion. The band width is expanding again, confirming the resumption of higher volatility favoring the upside for now, though a sustained breach above $73.20 would warrant caution.
Volume-Price Relationship
Recent price gains have occurred on moderate volume (4.02 million shares vs. ~3.5 million avg), lacking the decisive conviction seen on major breakout days like 2025-09-12 (7.08M shares on +0.69%) or the August surge near $74.26 (3.37M shares on +1.50%). The high-volume down day on 2025-08-15 (7.79M shares) near $71.93 underscores that level as significant volume-based support. Sustainability of the current move above $73 would benefit from an increase in volume participation to validate demand.
Relative Strength Index (RSI)
XEL's estimated 14-period RSI (~63) resides comfortably in the neutral zone, trending upwards from the mid-50s. While above the key 50 level (supporting the bullish trend), it remains significantly below the overbought threshold of 70. This positioning suggests room for further upside before reaching technically stretched levels and tempers immediate reversal concerns.
Fibonacci Retracement
Taking the significant swing low of approximately $63.05 (Oct 2024) to the recent swing high of $74.26 (Aug 2025), key retracement levels are established. The 38.2% level (~$69.90) and particularly the 50% level (~$68.65) acted as crucial support zones during pullbacks in May, July, and September. Current price action near $73 is testing resistance above the 23.6% retracement level (~$71.50). A decisive break above $74.26 would target the 161.8% Fibonacci extension (~$78.50). Conversely, the 61.8% level (~$67.40) offers major support should a deeper retracement occur.
Confluence and Divergence
Confluence exists around $71.80-$72.00, combining the psychologically significant $72 level, the late-July low ($71.14), recent lows, the 23.6% Fibonacci level ($71.50), and Bollinger Band convergence, making this a strong support zone. The break above this zone last week is technically significant. No significant bearish divergences are apparent currently; the RSI and MACD momentum align with the recent price recovery. The primary area requiring vigilance is volume; the modest volume on the recent advance diverges slightly from the high volume seen on prior major surges and the August decline at $71.93, potentially signaling a need for more robust participation to sustain the move above $73 decisively.