SCANA Continues to Trade Deep in the Oversold Zone
Currently, SCANA (SCG) stock is trading deep in the oversold zone. On October 3, 2017, its RSI (relative strength index) was at 11. SCANA stock entered the oversold zone on September 26 and has been trading weak since then. It should be noted that SCANA’s current RSI levels suggest a recovery in the near future.
RSI values below 30 are considered to be trading in the “oversold” zone, while values beyond 70 are considered to be in the “overbought” zone. Technical analysts think that RSI values at extremes are an indication of a reversal in the stock’s direction.
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On October 3, 2017, SCANA stock was trading 19% and 26% below its 50-day and 200-day moving average levels, respectively. The huge discount to both of these key moving average levels shows the daunting weakness in the stock. The stock will likely trade weak until it crosses above both of these levels. SCANA’s 50-day moving average level is near $59.70. It’s expected to act as a resistance going forward. Currently, it’s trading at $48.55.
SCANA stock is trading near its three-year low. It has corrected more than 32% in the past year. SCANA stock has witnessed a huge rise in its volume in the last few trading sessions. On October 3, 2017, nearly 2.2 million SCANA shares exchanged hands against its three-month average daily trading volume of 1.5 million shares.
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