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Understanding Utilities’ Chart Indicators: SO, ETR, and FE

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Moving averages

In this part of our series, we’ll compare the moving averages of the three utilities with the highest dividend yields in the sector (XLU): Southern Company (SO), Entergy (ETR), and FirstEnergy (FE).

SO is currently trading on par with its 50-day and 200-day MA (moving average) levels. Notably, SO’s 50-day MA has crossed below its 200-day MA, which can be considered as a negative sign. Technical analysts call this a “death cross,” which can bring a bearish trend in the stock going forward. Its RSI (relative strength index) looks stable right now at 57.

SO dma

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FirstEnergy

FirstEnergy has shown a great momentum lately, with the stock gaining more than 8% over the past month. FE is now trading at 5% and 4% premiums to its 50-day MA and 200-day MA levels, respectively. The stock could continue to trade strong until it crosses below both these levels. Its RSI now stands at ~51.

Entergy is now trading at a 1% discount and 3% premium to its 50-day MA and 200-day MA, respectively. Its 200-day MA level of ~$74.40 could act as a support going forward.

Among these three utilities, FirstEnergy stock looks strongest, considering its simple moving average levels and RSI.

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