Xcel Energy Inc (XEL) is assessed using Elliott Wave analysis on a long-term chart. From the early 2000s, the price action is described as a five-wave advance at a higher degree, followed by a wave IV correction and then wave V, before a major top formed and a correction began.<\/p>\n
The decline is presented as a three-wave a-b-c corrective structure at cycle degree. Wave c is said to have ended near $43.64, which is treated as the key invalidation level and as the end of wave (II).<\/p>\n
After reaching $43.64, the stock moved higher, indicating the early stage of wave I of (III). At a lower degree, five waves are stated as complete in wave ((1)), followed by a pullback in wave ((2)), with a new rise interpreted as the start of wave ((3)).<\/p>\n
The outlook remains bullish while price stays above $43.64. The stated technical summary includes: invalidation level $43.64, trend bias bullish, wave position early stage of wave I of (III), and an impulsive structure after a completed lower-degree five-wave move.<\/p>\n
Given that XEL has completed its corrective wave and is starting a new upward push, we see a clear opportunity in the options market. The technical structure suggests a strong, sustained rally is beginning. This means we should favor strategies that benefit from a rising stock price and potentially increasing volatility.<\/p>\n
This technical turn is supported by fundamental developments from late 2025. Following a period of economic slowdown last year, Xcel’s Q4 2025 earnings, reported just last month in January 2026, showed a surprising 5% beat on revenue. This was driven by higher-than-expected industrial energy demand, signaling a potential economic recovery.<\/p>\n
The broader market environment also supports this view. The latest Energy Information Administration (EIA) report forecasts a 2.5% rise in national electricity consumption for 2026, a sharp reversal from the flat growth we saw in 2025. As interest rates have stabilized, capital-intensive sectors like utilities are becoming more attractive again.<\/p>\n
Therefore, we believe buying call options is the most direct way to trade this outlook. Considering the long-term nature of the projected wave (III), we should look at expiration dates at least six to nine months out to capture the bulk of the expected move. These longer-dated options will be less sensitive to short-term price decay.<\/p>\n
For those with a more conservative risk appetite, selling cash-secured puts or bull put spreads offers another approach. We can set the short strike price safely below the key invalidation level of $43.64. This strategy allows us to collect premium while defining our risk to a level the technical analysis deems critical.<\/p>\n
Implied volatility on XEL has been relatively compressed during the corrective phase we saw through much of 2025. As the new impulsive wave gains momentum, we expect volatility to expand, making now an opportune time to be a net buyer of options. An increase in volatility would further enhance the value of our long call positions.<\/p>\n
This setup is reminiscent of the recovery phase we experienced back in 2021, after the market stabilized from the 2020 downturn. Utility stocks saw a steady, powerful advance as the economy reopened. We may be witnessing the very early stages of a similar multi-quarter rally in XEL today.<\/p>\n","protected":false},"excerpt":{"rendered":"
Elliott Wave analysis suggests Xcel Energy turned bullish above $43.64, beginning wave I of (III) advance.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42198","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/42198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=42198"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/42198\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=42198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=42198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=42198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}