TotalEnergies (TTE) – Bullish Head and Shoulders Breakout with Gap and 2025 Profit Potential

TotalEnergies (TTE) – Bullish Head and Shoulders Breakout with Gap and 2025 Profit Potential

TotalEnergies SE (TTE) has recently completed a Bullish Head and Shoulders breakout, confirming a trend reversal with a breakout gap above the neckline on the daily timeframe. This gap breakout is a strong technical signal, often indicating institutional buying pressure and a potential continuation of the uptrend.

Company Overview and 2025 Growth Potential

TotalEnergies (NYSE: TTE) is a global energy leader, engaged in oil, natural gas, renewables, and petrochemical production. The company has aggressively expanded its low-carbon and renewable energy investments, positioning itself for long-term growth in a transitioning energy market.

Key drivers for TTE’s profitability in 2025 include:

1. LNG and Oil Demand – The company is expanding its liquefied natural gas (LNG) infrastructure, meeting the growing global demand, especially in Asia and Europe.
2. Renewable Energy Expansion – TTE aims to double its renewable energy capacity by 2025, investing in solar, wind, and hydrogen technologies.
3. Strong Cash Flow & Dividends – TTE has a stable dividend yield and share buyback programs, enhancing shareholder returns.
4. Global Diversification – With operations across multiple energy sectors and regions, the company maintains resilience against market fluctuations.

Technical Analysis – Bullish Head and Shoulders with Breakout Gap

The Bullish Head and Shoulders is a strong reversal formation, signaling the end of a downtrend and the start of an uptrend. The pattern consists of:

• Left Shoulder: A peak, followed by a decline.
• Head: A lower bottom, forming the lowest point of the pattern.
• Right Shoulder: A higher low, indicating a shift in momentum.
• Neckline Breakout: Confirmation of the pattern when price moves above resistance.

Breakout Gap and Its Technical Significance

The breakout of the neckline occurred with a price gap, which is a critical technical event with several implications:

1. Increased Buying Pressure – A gap breakout typically indicates strong institutional demand, suggesting higher confidence in the stock’s upside potential.
2. Support Formation at the Gap Zone – The price gap often serves as a new support level, where future pullbacks may find buying interest.
3. Momentum Confirmation – A breakout gap increases the likelihood of a sustained uptrend, as it shows higher conviction from market participants.

With the breakout confirmed, technical analysis suggests higher price targets, aligned with TTE’s strong fundamentals and growth outlook.

Conclusion

TotalEnergies combines a bullish technical breakout with fundamental strength, making it an attractive stock for 2025 growth opportunities. The gap breakout strengthens the validity of the reversal, suggesting further upside potential in the coming months.

Disclaimer

This analysis is for educational purposes only and does not constitute financial advice. I am not licensed for portfolio management, and the responsibility for any investment decision remains with the reader. Trading and investing involve risk, and independent research is recommended before making financial decisions.