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.
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.