On July 6, 2017, NRG Energy (NRG) stock was trading at a 1% and 9% premium to its 50-day and 200-day moving average levels, respectively. The premium to both the moving average levels underlines strength in the stock. Going forward, NRG Energy stock might see support around its 50-day moving average, which is near $16.30. The stock could maintain its strength until it trades above both of its moving averages.
When a stock price rises above or falls below a moving average, it’s considered a bullish or bearish sign, respectively.
Relative strength index
Currently, NRG Energy’s RSI (relative strength index) is near 33, which is on the verge of the “oversold” zone.
Note that the RSI is a momentum indicator made up of values between zero and 100. Movements below 30 imply that a stock is oversold, while movements above 70 imply that a stock is overbought. RSI levels at extremes indicate a possible reversal in the stock movement.
According to a recent report, short interest in NRG Energy stock fell 9% on June 15, 2017. Total shorted shares in NRG Energy were 16.6 million on May 31, 2017, and fell to 15.1 million by June 15, 2017. The fall in short interest might signal that fewer investors anticipate that the stock will fall in the near term from current levels.
Short interest is the number of a company’s shares that have been sold short and haven’t been covered. The number also helps track investor sentiment.
You can evaluate the top three utility stocks (IDU) (XLU) to discover which one presents a better investment proposition. Read The Best Utility Stock out There: NEE, DUK, or SO? to learn more.