SCANA Trades in the ‘Oversold’ Zone
SCANA (SCG) stock has been on a losing spree in the last few months as its nuclear power plant issues got worse. In the last ten trading sessions, it has lost more than 12%. Currently, it’s trading 16% and 23% below its 50-day and 200-day moving average levels, respectively. The huge percentage of discount to both the moving average levels stresses the weakness in the stock. It might face resistance near its 50-day moving average level of $60.69. Currently, it’s trading at $51.22.
SCANA stock has corrected 32% from its 52-week high of $75 in December 2016.
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Relative strength index
SCANA stock has its RSI (relative strength index) at 14. SCANA stock is trading deep in the “oversold” zone.
Technical analysts consider RSI values below 30 to be trading in the “oversold” zone, while values beyond 70 are considered to be in the “overbought” zone. Extreme RSI levels might indicate a reversal in the stock’s direction.
According to a recent filing, the short interest in SCANA rose 15% on September 15, 2017. The total shorted shares in SCANA were 3.6 million on August 31, while they rose to 4.2 million shares on September 15, 2017. The increase in the short interest might suggest that more investors expect SCANA stock to fall from the current levels.
The short interest indicates the number of shares that are sold short and aren’t covered yet. It generally indicates investors’ anxiety.
To learn how US utilities (XLU) (VPU) are positioned for the future, read The Week Ended September 22: Rate Hike Fears Pressured Utilities.