Currently, Southern Company’s (SO) chart indicators seem stable. On March 17, 2017, the stock was trading 3% above its 50-day moving average and just above its 200-day moving average. The stock hasn’t done well in the past year. Currently, it’s trading near its levels last year.
In the near future, Southern Company stock might turn bullish if it continues to trade above its 200-day moving average at $50.50. On the downside, its 50-day moving average near $49.20 might act as a support in the short run.
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Remember, when a stock price rises above or falls below a moving average, it’s considered a bullish or bearish sign, respectively.
Now, Southern Company’s RSI (relative strength index) stands at 63. The RSI is a momentum indicator made up of values between 0 and 100. Movements below 30 are considered to be in the “oversold” zone. Movements above 70 are considered to be in the “overbought” zone and could hint at an imminent reversal in the stock.
Southern Company stock rose 10% from its 52-week low of $46.20, while it’s still 7% below its 52-week high of $54.64.
Is it the right time to enter Southern Company? In the next part, we’ll see how it’s currently valued among its peers (XLU).