Where Southern Company Stock Might Go from Here
Is Southern Company stock weak?
Southern Company (SO) stock has been on a downtrend in the last few trading sessions. It has significantly underperformed broader utilities (XLU) (VPU) in the past year. Southern Company fell 7%, while the Utilities Select Sector SPDR ETF (XLU) rose 6% in the past year. Let’s discuss where Southern Company stock might go in the near future.
Interested in SO? Don't miss the next report.
Receive e-mail alerts for new research on SO
Currently, Southern Company stock is trading at a marginal premium to its 50-day moving average and a 1% discount to its 200-day moving average level. The bearish tone might remain in Southern Company stock if it breaks below both of these moving average levels. Its 200-day moving average level at ~$49.32 might act as resistance going forward. Southern Company stock is trading at $48.94.
Southern Company has its RSI (relative strength index) at 45. Technical analysts consider RSI values beyond 70 to be in the overbought zone, while values below 30 are considered to be in the oversold zone.
According to a recent filing, the short interest in Southern Company fell 3% on September 15, 2017. The total shorted shares in Southern Company were 21.3 million on August 31, while they fell to 20.6 million on September 15, 2017.
The fall in the short interest might indicate that fewer investors expect Southern Company stock to fall from the current levels.
The short interest shows the shares that are sold short and not yet squared off. The short interest tracks investors’ unease.