Sempra Energy (SRE) stock rose 1.6% and hit an all-time high of $118.78 after the news of Oncor’s acquisition. Sempra Energy has risen nearly 10% in the last 12 months, while the Utilities Select Sector SPDR ETF (XLU) has risen more than 8%. The SPDR S&P 500 (SPX-INDEX) (SPY) has risen 12% during the same period.
Let’s see where Sempra Energy stock could go in the near future.
On August 21, 2017, Sempra Energy was trading 4% and 9% above its 50-day and 200-day simple moving average levels, respectively. The strength in Sempra Energy stock is highlighted by the large premium to both its moving average levels. Its 50-day moving average with levels around $114.0 might act as a support for Sempra Energy stock going forward. Currently, Sempra Energy is trading at $118.40.
Sempra Energy’s RSI (relative strength index) stands just above 70. It seems to be on the verge of entering the “overbought” zone.
Technical analysts refer to RSI values above 70 as being in the “overbought” zone, while values below 30 are in the “oversold” zone. Extreme RSI levels might cause the stock’s direction to change.
Many utility stocks have shown a decent run in the last few trading sessions. They’re trading in the “overbought” zone. NextEra Energy (NEE), the biggest component of XLU, has its RSI near 72. XLU has its RSI at 68 as of August 21, 2017.
To learn more about NextEra Energy’s chart indicators, read Why NextEra Energy Continues to Impress.