uploads/2017/01/nee-dma-1.jpg

Understanding NextEra Energy Stock ahead of Its 4Q16 Results

By

Updated

Chart indicators

On January 19, 2017, NextEra Energy (NEE) stock was trading at a 2% premium and at a 1% discount to its 50-day and 200-day moving averages, respectively. Both these levels may now act as support and resistance levels, respectively, in the short term.

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.

nee dma

Article continues below advertisement

Relative strength index

NEE’s RSI (relative strength index) currently stands at 62. Remember, RSI 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’s price.

Advertisement

More From Market Realist