Utilities witnessed a solid uptrend mainly after the Fed delivered the third interest rate hike in 2018. Duke Energy (DUK) stock, one of the top gainers, has risen more than 15% during the same period. The stock hit a new 52-week high on December 4. Let’s take a look at where Duke Energy stock could go from the current levels. Duke Energy is trading at $90.0, which is almost 8% and 13% above its 50-day and 200-day moving average levels, respectively. The fair premium to both of the support levels highlights the strength in the stock. The levels close to $83.74 and $79.80 could act as a support for Duke Energy stock in the short term.
Top utility stocks
Many top utility stocks are approaching an overbought zone due to their recent strength. Duke Energy stock is trading in the overbought zone with its RSI at 79. RSI levels at extremes hint at an impending reversal in the stock’s direction.
NextEra Energy (NEE), the biggest component of the Utilities ETF (XLU), is trading 4% and 9% above its 50-day and 200-day moving average levels, which indicates strength. Dominion Energy (D) and Southern Company (SO) are trading above their respective 50-day and 200-day moving average levels. Their RSI is around 69 and 64, respectively.
To learn about XLU’s chart indicators, read Analyzing Utilities in the Week Ending November 30.