Top utility stocks have lost some momentum after touching multiyear highs. The Utilities Select Sector SPDR ETF (XLU), trading at $57.29, is on par with its 50-day moving average and 5% above its 200-day moving average. Its all-time high of ~$59 has acted as resistance recently.
XLU broke above its 50-day average early this year, and testing these levels could concern investors—it could weaken if it breaks below that average. Its 200-day average of $54.65 could continue to act as crucial short-term support. Last week, XLU closed with an RSI (relative strength index) score of 37.
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Top utilities’ chart indicators
Southern Company (SO), the top gainer among utilities, is trading at $51.96, almost 3% and 10% above its 50-day and 200-day moving averages, respectively. Its RSI score is 50.
The third-biggest utility by market cap, Dominion Energy (D), has risen ~5% this year, underperforming broader utilities. The stock is approaching the “oversold” zone, with an RSI score of 33. An RSI score above 70 suggests a stock is overbought, while an RSI score below 30 suggests it is oversold.