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Where Could Duke Energy Stock Go in the Near Term?

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Short interest

Short interest gives the number of a company’s shares that have been sold short and haven’t been covered. The number also helps track investor sentiment, and so a fall in short interest for Duke Energy (DUK), for example, would indicate that fewer investors expect downside in DUK stock from its current levels.

According to a recent report, short interest in Duke Energy fell by more than 5% on October 31, 2016. The total shorted shares on October 14 were 9.7 million, as compared to a short of 9.2 million on October 31, 2016.

duk SI

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Chart indicators

Duke’s stock has seen considerable weakness this month after the 2016 Presidential election results. As of November 22, 2016, Duke was trading at 5% and 7% discounts to its 50-day and 200-day moving averages, respectively. A fair discount percentage suggests weakness in the stock. These moving average levels are likely to act as resistances in the short term.

Moving averages show that when a stock rises above a particular moving average, it’s bullish. When it falls below the average, it’s bearish.

Relative strength index

The RSI (relative strength index) is a momentum indicator made up of values between zero and 100. Movements below 30 are considered to be in the “oversold” zone, while movements above 70 are considered to be in the “overbought” zone and can hint at an imminent reversal in the stock price.

Duke Energy’s RSI now stands at 38.

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