NRG Energy (NRG), the largest merchant power player, stock was one of the top gainers among the S&P 500 last year. So far in 2018, it has lost more than 5% and largely followed broader utilities (IDU). The SPDR S&P 500 (SPX-INDEX) (SPY) rose 3% during the same period. Let’s see how NRG stock is placed ahead this year.
On January 18, 2018, NRG Energy was trading 5% below its 50-day moving average level and 15% above its 200-day moving average level. Its 200-day moving average level around $23.1 will likely act as a support in the short term. Currently, it’s trading at $26.8.
NRG Energy stock seems relatively well placed given its key moving average levels. Many utility stocks among the S&P 500 Utilities Index (XLU) are currently trading at a large discount to their respective moving averages.
Relative strength index
NRG stock entered the “oversold” zone on January 18, 2018, with its RSI (relative strength index) at 28.
When a stock’s RSI falls below 30, it’s said to be trading in the “oversold” zone. When its RSI goes above 70, the stock is said to be trading in the “overbought” zone. Extreme RSI values might hint at a pending reversal in the stock’s direction.
According to a recent report, the short interest in NRG Energy increased 6% on December 29, 2018. On December 15, the total shorted shares in NRG Energy were 20.8 million, while the number increased to 21.9 million on December 29, 2018. The increase in the short interest indicates that more investors expect the stock to fall in the near term.