Utility holding company CenterPoint Energy (CNP) stock is approaching a 52-week high as it closed at $24.76 on December 27, 2016. It is trading a few percentage points short of its previous 52-week high of $24.98.
On December 27, 2016, CNP stock was trading at a 5% and 8% premium to its 50-day and 200-day moving averages, respectively. The fair percentage to both moving averages highlights the strength in the stock. Both these levels may act as a support in the short term.
We can analyze a stock’s moving averages via a price crossover of two or more of its moving averages. When a stock’s price exceeds a particular moving average, it’s a bullish sign, and vice versa. When a stock’s shorter moving average crosses over its longer moving average, it’s a “buy” signal for the stock.
In comparison, its peer DTE Energy (DTE) was trading at a 4% and 5% premium to its 50-day and 200-day moving averages, respectively. The premium to both moving averages may keep the rally going for a while longer. The stock may remain strong until it breaks below these moving average levels.
Another peer, WEC Energy Group (WEC) is trading at 2% premium and a 2% discount to its 50-day and 200-day moving averages, respectively. These levels may act as a support and resistance, respectively.
Relative strength index
CenterPoint Energy’s RSI (relative strength index) currently stands at 67. RSI is a momentum indicator measured by values between 0 and 100. Movements below 30 are considered to be in the “oversold” zone, and movements above 70 are considered to be in the “overbought” zone. RSI at extremes indicate imminent reversal.