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Is CenterPoint Energy Stock Set to Soar?

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Chart indicators

On November 7, 2016, CenterPoint Energy (CNP) was trading at a 3.0% and 7.0% premium to its 50-day and 200-day moving averages (or DMA), respectively. A fair premium for both its moving averages indicates imminent bullishness in the stock. These DMA levels may now act as supports in the future.

CNP 5

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Relative strength index

Currently, CNP’s RSI (relative strength index) stands at 63. RSI is a momentum indicator made up of values between 0 and 100. Movements below 30 are considered to be in the “oversold” zone. Movements above 70 are considered to be in the “overbought” zone. When the RSI indicator is at extremes, it can hint at an imminent reversal in a stock’s price.

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