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Analyzing AMLP’s Chart Indicators and Short Interest

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Moving averages

Currently, the Alerian MLP ETF (AMLP) is trading at $10.02—on par with its 200-day moving average level. AMLP is marginally above its 50-day moving average level of $9.9, which might act as support in the short term. AMLP broke below its 200-day level in October, which has acted as a strong resistance from the last several trading sessions. Once AMLP breaks above this level, there might be a bullish tone. AMLP’s relative strength index is at 43, which indicates that it isn’t in the overbought or the oversold zone.

AMLP dm

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Short interest

The short interest in AMLP increased ~30% on March 29. On March 15, the total shorted units in AMLP were ~24.2 million. The total shorted shares rose to 31.5 million on March 29.

A rise in a stock’s short interest might indicate that more investors expect it to fall from its current price levels. A company or fund’s short interest level indicates the number of its shares that have been sold short and not yet squared off. The short interest measures investors’ anxiety.

To learn more, visit Market Realist’s Energy MLPs page.

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