NRG Energy’s (NRG) chart indicators continue to show bullish signs even after its epic ascent in the last few months. On April 12, 2017, NRG Energy stock was trading 7.0% and 35.0% above its 50-day and 200-day moving averages, respectively. The huge premium to both the moving average levels indicated strength in the stock. Its 50-day moving average, which is nearly $17.55, might act as support in the short term.
When a stock exceeds a particular moving average, it’s a bullish sign and vice versa. When a stock’s shorter moving average crosses over its longer moving average, it’s considered a “buy” signal for the stock.
Relative strength index
Currently, NRG Energy’s RSI (relative strength index) stands at 58. The RSI is a momentum indicator made up of values between 0 and 100. Movements below 30 fall in the “oversold” zone, while movements above 70 are in the “overbought” zone. Extreme RSI values can hint at an imminent reversal in the price of a stock.
The short interest in NRG Energy fell 9.8% at the end of March 2017. The total shorted shares on March 31 were 12.8 million—compared to 14.2 million shorted shares on March 15, 2017. Decreased short interest indicates that fewer investors expect NRG Energy to demonstrate downside from its current levels.
Short interest indicates the number of company shares that were sold short without being covered. The metric helps track investor sentiment.
To learn about what’s happening with utility (XLU) giant Southern Company (SO), read Southern Company’s Struggle: An Investor’s Perspective.