Dominion Energy’s monthly chart indicates a strong bullish structure, hinting at a potential Elliott Wave progression. Recent analysis suggests the stock may have finished its corrective wave ((2)), paving the way for a powerful bullish wave ((3)).
The wave count depicts a five-wave impulse from the 1980s to the 2007 peak, followed by a WXY double three correction recently ending near $45. This decline stayed above the critical invalidation level at $2.28, after which prices have rebounded with increasing bullish momentum.
The preferred Elliott Wave count suggests a movement to the upside, with long-term projections surpassing $100. Traders are encouraged to consider a long position, especially near blue box areas during pullbacks. These zones present high-probability entry points for the next upward move.
This structure likely forms part of a larger degree wave ((3)), which is characterised by robust momentum and swift price acceleration. If the pattern remains valid, this rally could extend for years, offering potential growth for long-term market participants.
Dominion Energy might have ended its multi-year correction and could be entering a new bullish cycle. The chart pattern supports potential further gains, making it an important stock to monitor moving forward.
Based on the Elliott Wave structure, we see Dominion Energy as having completed a major correction and now entering a period of significant upward momentum. This suggests that any pullbacks in the coming weeks should be viewed as buying opportunities rather than signs of weakness. This view is strengthened by the recent Q2 2025 earnings report in late July, which beat expectations and offered strong guidance for the rest of the year.
The technical setup is supported by recent fundamental news, making the bullish case more compelling for us. For instance, Virginia’s State Corporation Commission just approved a key grid modernization plan last month, which should provide a stable revenue stream for years. This has helped propel the stock, which is already up over 18% year-to-date as of early August 2025.
For traders looking to capitalize on this expected upward thrust, buying call options is a direct approach. We are seeing a notable increase in open interest for the September and October 2025 call options, particularly around the $60 and $65 strike prices. This indicates that market participants are positioning for a continued rally in the near term.
Alternatively, selling cash-secured puts offers a way to either generate income or acquire the stock at a lower price. If the stock experiences a minor dip into one of the identified blue box support zones, say near $55, selling a put at that strike could be an effective strategy. This aligns with the analysis that pullbacks represent high-probability entry points.
Looking back, we remember the stock’s weak performance throughout 2023 and much of 2024 as it completed that corrective pattern. The dividend provided some stability, but the price action was discouraging for many. The sharp rebound we have witnessed in 2025 marks a clear change in character for the stock.
Given the projection for a multi-year rally aiming for prices above $100, longer-term strategies should also be considered. Using bull call spreads with longer-dated expirations, like those for January 2026, could allow traders to participate in the upside while defining their risk. This approach balances the cost of entry with the potential for substantial gains if the powerful wave ((3)) continues to unfold as anticipated.
