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Where NextEra Energy Stock Could Go in the Short Term

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Nov. 20 2020, Updated 9:35 p.m. ET

Chart indicators

Broader utilities (XLU) have witnessed notable weakness recently mainly due to the strength in Treasury yields. 

Top utility stock NextEra Energy (NEE) is currently trading marginally lower than its 50-day moving average and 5% higher than its 200-day moving average. Its 200-day moving average of ~$162.0 could act as a support level for it in the short term. The stock closed at $169.34 on October 2.

NEE dma

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NextEra Energy’s RSI (relative strength index) currently stands at 52. An RSI level is a momentum oscillator and takes values between 0 and 100. According to analysts, a stock is considered oversold when its RSI score drops below 30 and overbought when its RSI score rises above 70. Extreme RSI values imply an impending reversal in a stock’s direction.

If you wish to read about utilities’ recent performances and how they’re placed going forward, read Weekly Review: How Utilities Traded Last Week amid the Rate Hike.

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