Inside Dominion Energy’s Chart Indicators
Dominion Energy: chart indicators
Dominion Energy (D) stock has corrected few percentage points after hitting a new all-time high of $81.65 last week (ended June 2). On June 8, 2017, Dominion stock was trading 2% and 5% above its 50-day and 200-day moving averages respectively.
The fair premium to both moving averages underlines the strength in Dominion’s stock. Its 50-day moving average level, at around $78.50, could act as a support in the short term.
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Remember, when a stock’s price crosses above or falls below its moving average, it’s considered a bullish or a bearish sign, respectively.
Relative strength index
RSI (relative strength index) is a momentum indicator made up of values between 0 and 100. Movements of below 30 are considered to be in the “oversold” zone, while movements of above 70 are considered to be in the “overbought” zone and could hint at an imminent reversal in the stock.
Given its RSI, Dominion Energy stock seems to be fairly placed. The company’s RSI is now near 42. At the same time, Dominion Energy stock has shown quite a decent run. In the past year, it has gained more than 9%, while the Utilities Select Sector SPDR (XLU) has gained 7%. By comparison, Southern Company (SO) stock has risen a mere 1%, while NextEra Energy (NEE) has risen 18% in the past 12 months.
You can read more about what’s happening with Duke Energy in How Does Duke Energy Stock Look as It Nears All-Time High? Continue to the next part of this series for a closer look at valuations.