SCANA Stock Is Still Trading in the Oversold Zone
SCANA stock looks weak
SCANA Corporation (SCG) stock seemed to have taken a breather from its free fall in the last few trading sessions. In the last one-month period, SCG stock has corrected more than 17% after the US Attorney’s office in South Carolina commenced a criminal investigation against the utility regarding rate recovery of the V.C. Summer nuclear power plant.
The RSI (relative strength index) of SCANA stock currently stands at 25. It entered the oversold zone on September 19, 2017, and it continues to trade there. According to technical analysis, RSI values below 30 are considered in the oversold zone, while RSI values above 70 are considered in the overbought zone. RSI readings at the extremes could indicate a reversal in a stock’s direction.
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On October 10, 2017, SCANA (SCG) was trading 15% and 25% below its 50-day and 200-day simple moving average levels, respectively. The large discount to both key moving average levels highlights considerable weakness in SCG stock.
SCANA’s 50-day moving average level of ~$57.72 could act as a resistance going forward. It is currently trading at $49.11.
SCANA is currently trading near its three-year low. SCG is the top loser among the S&P 500 Utilities Index with its stock falling more than 30% in 2017. In comparison, the Utilities Select Sector SDPR ETF (XLU), which represents the S&P 500 utilities, has surged 11% year-to-date.