Southwestern Energy Stock and Its 8% Rise Last Week
Southwestern Energy stock
Last week, Southwestern Energy (SWN) stock rose 8%, from $4.08 on May 7 to $4.42 on May 14. It continued its consolidation around the 50-day moving average. On May 14, SWN moved above its 50-day moving average. Its 50-day and 200-day moving averages that day were $4.33 and $5.12, respectively, and SWN was trading at $4.42.
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Year-to-date, SWN stock has fallen 21%. At the end of April, it hit a lower low on the daily chart, indicating that it’s still on a downward trend.
In the last week of January, SWN lost the very critical support of $4.90 on a heavier-than-30-day-average volume. That’s the level that stopped the September 2016 to October 2017 sell-off in the stock. Interestingly, it’s also the same level that provided support to SWN stock to stop its May 2014 to December 2015 decline.
Natural gas rose
Last week, natural gas (UNG) prices rose 4%, increasing from $2.74 per mmBtu (million British thermal unit) on May 7 to $2.84 per mmBtu on May 14. Currently, natural gas prices are consolidating above their 50-day moving averages. As of May 14, its 50-day and 200-day moving averages were $2.73 and $2.88, respectively, and natural gas was trading at $2.84 per mmBtu.
Due to higher natural gas (UNG) prices last week, the First Trust ISE-Revere Natural Gas ETF (FCG) rose 3.6%. FCG represents an index of energy stocks that derive a substantial portion of their revenues from the exploration and production of natural gas.
In the next part, we’ll look at SWN’s correlation coefficient with natural gas prices.