Dominion stock continues to tumble
There hasn’t been any respite for Dominion Energy (D) investors. The stock has corrected almost 20% YTD (year-to-date). Dominion Energy stock has severely underperformed broader utilities (XLU) (IDU). The company has been on a notable downtrend since the announcement about buying SCANA (SCG) early this year. In comparison, Duke Energy (DUK) and Southern Company (SO) have fallen almost 8% YTD.
Interestingly, Dominion Energy stock continues to look fairly weak in the short term given its moving averages. Currently, Dominion Energy is trading 9% lower than its 50-day moving average and 16% lower to its 200-day moving average. The large discount to both of the key moving averages underlines the weakness in the stock. Dominion Energy’s 50-day moving average around $71.6 is expected to act as a resistance for the stock in the near term. Dominion Energy closed at $64.9—close to its 52-week low on April 11, 2018.
Relative strength index
Dominion Energy stock is trading in the “oversold” zone with its RSI (relative strength index) at 22.
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.
The short interest in Dominion Energy stock rose 6% on March 29. On March 15, 2018, the total shorted shares in Dominion Energy were 17.5 million. The shares increased to 18.6 million on March 29. An increase in the short interest could mean that more investors expect the stock to fall from its current price levels.
The short interest is the number of shares sold short and not squared off yet. The short interest measures investors’ anxiety.