On November 4, 2016, Duke Energy (DUK) was trading at a 1.5% and 2% discount to its 50-day and 200-day moving averages (or DMA), respectively. Although the stock is trading at a trivial discount, the breaks below the averages reflect the recent bearishness in the stock.
Plus, these moving averages may now act as upside resistance for the stock. The fact that the stock’s 50 DMA has broken below its 200 DMA is also a bearish sign.
Relative strength index
Currently, DUK’s RSI (relative strength index) stands at 44. RSI is a momentum indicator made up of values between zero 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.