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Short Interest in Duke Energy Rises Sharply but Stock Looks Strong

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Chart indicators

Duke Energy (DUK) stock seems strong currently as it trades 4% and 3% above its 50-day and 200-day moving average, respectively. Both these levels, that is levels near $78.40 and $79.65, may now act as a support in the short term.

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

DUK dma

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Relative strength index

Currently, Duke Energy’s RSI (relative strength index) stands at 64. RSI is a momentum indicator comprised of values between 0 and 100. Movements below 30 are in the “oversold” zone, while movements above 70 are in the “overbought” zone. Extreme RSI levels could indicate an imminent reversal.

Short interest

Short interest in Duke Energy rose more than 17% on February 15, 2017. Total shorted shares in the company were 8.7 million on January 31, 2017, and rose to 10.2 million by mid-February 2017. A rise in short interest can mean that more investors are expecting the stock to fall in the near term.

Remember, 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.

Read about what’s happening with Southern Company (SO), another utility (XLU) giant, in Can Southern Company Overcome Its Newest Challenges?

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