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FirstEnergy Stock: What Can Investors Expect?

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Feb. 13 2019, Published 8:02 a.m. ET

Moving averages

Currently, FirstEnergy (FE) stock is trading close to its 52-week high. The stock continues to look strong based on its simple moving average levels. FirstEnergy is trading at $39.5, which is almost 3% and 7% above its 50-day and 200-day moving average levels, respectively. The fair premium to both of the levels highlights the strength in the stock. The levels close to $38.3 and $36.8 will likely act as a support for FirstEnergy stock in the short term.

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Relative strength index

FirstEnergy’s RSI (relative strength index) is 66, which implies that it isn’t in the oversold or overbought zone.

RSI values below 30 suggest that the stock is oversold, while values above 70 suggest that the stock is overbought. An RSI at either extreme indicates an imminent reversal in the stock’s direction.

The recent strength in broader utilities (IDU) has put many stocks in the “overbought” zone. The Utilities Select Sector SPDR ETF (XLU) is trading at an RSI of 78, which implies that it’s overbought.

Short interest

The short interest in FirstEnergy stock fell 5% as of January 31. The total shorted shares in FirstEnergy were 29.6 million on January 15, while the total shorted shares decreased to 28.2 million as of January 31.

A decrease in the short interest could indicate that fewer investors expect FirstEnergy to fall from the current price levels. The short interest is the number of shares that are sold short and not squared off. The short interest measures investors’ anxiety.

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