NextEra Energy (NEE) is currently trading on par to its 50-day moving average and at a 2% discount to its 200-day moving average. NextEra stock may trade cautiously until it breaks above its 200-day moving average. On the other hand, the stock may attain downward movement if it breaks below its 50-day moving average.
We can analyze a stock’s moving averages via a price crossover or two or more moving averages. The first method shows that when a stock’s price exceeds a particular moving average, it’s a bullish sign, and vice versa.
The second method tells us that when a stock’s shorter moving average crosses over its longer moving average, it’s a “buy” signal for the stock.
Relative strength index
NextEra Energy’s RSI (relative strength index) currently stands at 61. 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. Extreme RSI levels may indicate imminent price reversals.
The pace of the Federal Reserve’s rate hike schedule in 2017 is likely to remain a key indicator for utilities (XLU) going forward. Apart from the rate hike, their fourth quarter earnings may also pave the way ahead.
For additional details, please read NEE, SO, and DUK: Which Utility Is the Best Bet?