PPL’s Chart Indicators Are Trying to Tell Us Something
PPL: chart indicators
PPL Corporation (PPL) is one of the few internationally diversified electric utilities (XLU) in the US, valued at about $25 billion. The stock got punished in the second half of last year due to the UK’s Brexit referendum. However, on a positive note, the stock has done relatively better so far this year. But where is it likely to go in the near future?
PPL stock is currently trading at a 4% and a 2% premium to its 50-day and 200-day moving averages, respectively. The fair premium in both its moving average levels indicates strength in the stock. Moreover, the stock crossing above its 200-day MA (moving average) levels may also be termed as a bullish sign.
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Remember, moving averages show that when a stock rises above a particular moving average, it’s a bullish sign. When it falls below that average, it’s bearish.
Relative strength index
RSI (relative strength index) is a momentum indicator made up of values between 0 and 100. Movements below 30 are considered in the “oversold” zone, and movements above 70 are considered in the “overbought” zone. A stock entering the overbought zone can indicate an imminent reversal in the short term.
PPL’s RSI currently stands at 72.
PPL’s 4Q16 earnings
PPL Corporation posted better-than-expected earnings in 4Q16 early this month. The UK’s Brexit referendum was expected to impact its cash flows negatively, due to its significant operations in the UK, but the company’s hedging strategies and utilities’ strong performance boosted its quarterly earnings.