PPL stock continues to fall
While broader markets continue to rise, PPL Corporation (PPL) stock is making new lows. On December 19, 2017, PPL stock closed ~5% lower, while the Utilities Select Sector SPDR ETF (XLU) fell nearly 2%. Let’s see how PPL stock is placed ahead.
Currently, PPL is trading 11% below its 50-day moving average and 15% below its 200-day moving average. The large discount to both of the key moving average levels shows weakness in the stock. Going forward, its 50-day moving average level of $36.38 is expected to act as a resistance for PPL stock. Currently, it’s trading at $32.42.
Relative strength index
PPL is trading in the “oversold” zone given its RSI (relative strength index) level of 11. Its RSI level suggests that the stock might see a trend reversal in the near future.
Technical analysts consider RSI values below 30 to be trading in the “oversold” zone, while values above 70 are considered to be trading in the “overbought” zone. RSI levels at extremes might hint at a reversal in the stock’s direction.
PPL stock has seen tremendous weakness in the last few trading sessions. So far this month, PPL has lost more than 12%. It has lost 7% year-to-date, while broader utilities have risen 12% during the same period. The SPDR S&P 500 (SPX-INDEX) (SPY) has risen more than 20% this year. Volatile exchange rate movements caused by Brexit developments might have created the weakness in PPL stock.