A Look at Southern Company’s Moving Averages and Short Interest
The fourth-largest utility by market capitalization, Southern Company (SO), continues to trade weak. Utilities (XLU)(IDU) at large have shown tremendous weakness in the last few months since the last rate hike in December 2017.
Southern Company stock is trading lower than its support levels, and it continues to look weak. On March 12, it was trading 1% lower than its 50-day moving average and 9% lower than its 200-day moving average. Its 50-day moving average, close to $44.5, is likely to act as a resistance for the stock. It’s currently trading at $43.8.
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Relative strength index
Southern Company stock is trading at an RSI (relative strength index) of 50.
RSI values above 70 are considered to be in the “overbought” zone, while values below 30 are considered to be in the “oversold” zone. An RSI score at either extreme suggests an imminent reversal in the stock’s direction.
Short interest in Southern Company stock fell 1% on February 28. On February 15, total shorted shares in SO were 32.3 million. They decreased to 32.1 million on February 28. The fall in short interest could mean that fewer investors are expecting the stock to fall from its current price levels.
Short interest is the number of shares sold short and not yet squared off. Short interest measures investors’ anxiety.
For broader utilities’ (VPU) recent performance and growth outlook, see S&P 500 Utilities: Last Week’s Best and Worst Performers.