NextEra Energy (NEE) stock continued to rise. So far this year, NextEra Energy stock managed to gain nearly 13%—one of the highest among the S&P 500 Utilities Index (XLU). Currently, the stock is trading 2% and 5% above its 50-day and 200-day moving average levels. The fair premium to both its moving average levels highlights the stock’s strength.
It should be noted that when a stock’s 50-day moving average crosses above its 200-day moving average, it can be considered a bullish sign. When a stock price rises above or falls below a moving average, it’s considered a bullish or bearish sign, respectively.
Relative strength index
NextEra Energy’s RSI (relative strength index) stands at 69. It’s approaching the “overbought” zone.
The RSI is a momentum indicator made up of values between 0 and 100. Movements below 30 are considered to be in the “oversold” zone. Movements above 70 are considered to be in the “overbought” zone, which could hint at an imminent reversal in the stock.
In comparison, Duke Energy (DUK) and Southern Company (SO) stock continue to look relatively weak. Southern Company’s performance has taken a serious hit due to its ongoing issues with power plant delays. To learn more, read Southern Company: Westinghouse Issue Hints at a Thorny Path.
In the next part, we’ll look at NextEra Energy’s implied volatility.