Duke Energy stock looks strong
Duke Energy (DUK) stock has had an interesting run so far this year, and it’s still looking strong. On April 13, 2017, the stock was trading 3% and 4% above its 50-day and 200-day moving averages (or DMA), respectively. Its 50-DMA crossed above the 200-DMA, which can be considered a bullish sign going forward. In the near future, Duke Energy’s 50-DMA, at about $81.00, may act as its support.
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.
Relative strength index
Currently, Duke Energy’s RSI (relative strength index) stands at 55. RSI is a momentum indicator that consists 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 in Duke Energy fell 4% on March 31, 2017. Total shorted shares in the company were 11 million on March 15. They fell to 10.5 million by March 31, 2017. A fall in short interest can mean that fewer investors are expecting the stock to fall in the near term.
Remember that 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.
Next, we’ll look at the company’s valuation.