5110 : Can utility companies stocks provide high gains?

The classis answer is No!
because of limited growth and sensitive pricing.

However, utility companies like any other company can have change of strategy, management and even product.

Saudi Electric company had recently announced major changes to its governance and strategy by minister of energy himself. The chart tell the story that has been taking place since 2017, a relevant date to change of economic policies in the kingdom.
Since then, the stock had been trading in a volatility funnel and out performing on its targets. Recently the price-action broke above the 20 SAR level, a significant level to hold to continue in the up trend.

Next target coming up is 25 SAR given possible retracement to 21.0 SAR in the coming days.
5110

Trade closed: target reached:

Target met successfully. Although the stock spent three months testing at and around 21.0 SAR, a significant price level matching our H2 on the macro trend structure. This price behaviour indicate a shift in the investor psychology for a net long on the Saudi Electric Company future outlook. New chart analysis will be posted soon for new targets if the 25.0 SAR price level holds.