What Do FirstEnergy’s Chart Indicators Suggest?
FirstEnergy stock looks strong
FirstEnergy (FE) stock continued to rise on November 8, 2017, and hit a new 52-week high of $33.89. In the past month, FirstEnergy stock has gained more than 8% and outperformed broader utilities (XLU) (VPU). Interestingly, FirstEnergy stock continues to look strong considering its simple moving average levels.
On November 8, 2017, it was trading 6% and 9% above its 50-day and 200-day moving average levels, respectively. Its 50-day moving average is ~$31.87. It will likely act as support for the FirstEnergy stock going forward. Currently, FirstEnergy is trading at $33.73.
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Relative strength index
FirstEnergy stock is trading in the overbought zone given its current RSI (relative strength index) at 81. FirstEnergy stock might witness a trend reversal in the near future.
Technical analysts consider the stock to be trading in the “oversold” zone when the RSI falls below 30, while the stock is considered to be trading in the “overbought” zone when the RSI rises above 70. An RSI at extremes might suggest an imminent reversal in the stock.
So far, FirstEnergy has underperformed broader utilities this year. It has risen nearly 10% year-to-date, while the Utilities Select Sector SPDR ETF (XLU), which represents S&P 500 Utilities Index, has risen 14% during the same period.
FirstEnergy’s peer and one of the most geographically diversified utilities, AES (AES) stock has been hitting new lows. In contrast, broader utilities (XLU) (VPU) are climbing towards new highs. Read What Could Fuel a Rally for AES Stock? to learn more.