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Dominion Resources: Chart Indicators and Short Interest

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Jan. 5 2017, Published 9:15 a.m. ET

Chart indicators

Dominion Resources (D) has recovered almost 10% since the election last year. The stock seems fairly strong at the beginning of 2017. It was trading at a 3% premium to both its 50-day and 200-day moving averages as of January 4, 2017. Both of these levels could act as a support in the short term. The stock will likely remain strong until it breaks below these moving average levels.

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

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In comparison, as of January 4, 2017, NextEra Energy (NEE) stock was trading at par to its 50-day moving average. It was trading at a 2% discount to its 200-day moving average.

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Relative strength index

Currently, Dominion’s RSI (relative strength index) stands at 52. The 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. They can hint at an imminent reversal in the stock’s price.

Short interest

According to a recent report, the short interest in Dominion fell 5% on December 15, 2016. The company’s total shorted shares on November 30 were 20.3 million—compared to 19.4 million on December 15. The fall in the short interest indicates that fewer investors expect downside in Dominion from its current levels.

Short interest indicates the number of a company’s shares that have been sold short and haven’t been covered. The number also helps track investor sentiment.

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