The recent surge in PG&E (PCG) stock pushed it into the overbought zone. It’s currently trading at an RSI (relative strength index) of 72. A stock is considered oversold when its RSI score drops below 30 and overbought when its RSI score rises above 70. Extreme RSI values can imply an impending reversal in a stock’s direction.
PG&E stock has been highly volatile lately. Its implied volatility was close to 40% on August 29, much higher than its peers’ average volatility of 12%.
PG&E stock is currently trading at $46.9, roughly 8% and 6% above its 50-day and 200-day moving averages, respectively. Its fair premium to both these support levels indicates strength in its stock. These levels of ~$43.6 and $44.2 could act as supports for the stock in the near future.
Short interest in PCG stock increased 15% on August 15. On July 31, total shorted shares in PCG were 8.7 million. They rose to 10.0 million on August 15. An increase in short interest could mean that more investors expect the stock to fall from its current price level. Short interest is the number of a company’s shares that have been sold short and not yet squared off. Short interest measures investor anxiety.
The Utilities Select Sector SPDR ETF (XLU) seems strong given its recent chart indicators. You can read about these indicators in What XLU’s Current Chart Indicators and Short Interest Suggest. PG&E makes up more than 3.4% of XLU.