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Dominion Energy Stock Dives to a 52-Week Low

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Moving averages

Dominion Energy (D) pleased investors early this year with its SCANA (SCG) acquisition. Since then, Dominion Energy stock has been on a notable downtrend. The stock has corrected more than 12% YTD (year-to-date). Dominion Energy stock continues to look weak given the significant discount to its key moving average levels.

On March 15, 2018, Dominion Energy stock fell to $70.9—a new 52-week low. Currently, Dominion Energy is trading 5% lower than its 50-day moving average and 9% lower than its 200-day moving average. Dominion Energy’s 50-day moving average level of ~$74.7 is expected to act as a resistance for the stock in the short term. Dominion Energy is trading at $71.2.

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Relative strength index

Dominion Energy stock entered the “oversold” zone with its RSI (relative strength index) at 29.

RSI values above 70 are considered to be in the “overbought” zone, while values below 30 are considered to be in the “oversold” zone. An RSI score at either extreme suggests an imminent reversal in the stock’s direction.

Short interest

The short interest in Dominion Energy stock fell 5% on February 28. On February 15, 2018, the total shorted shares in Dominion Energy were 18.7 million. The shares declined to 17.7 million on February 28. The fall in the short interest could mean that fewer investors expect the stock to fall from its current price levels.

The short interest is the number of shares sold short and not yet squared off. The short interest measures investors’ anxiety.

Broader utilities (XLU) (IDU) look weak given the Fed’s hawkish stance on the interest rate hike this year. Broader utilities have fallen ~4% YTD.

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