Southern Company stock
Southern Company (SO), the top regulated utility stock, continued to rise. The stock hit an all-time high of $56.01 on June 19. The utilities sector is susceptible to interest rates. Recently, the utilities sector was upbeat due to the Fed’s slower-than-expected interest rate hike pace. On June 19, the FOMC kept the interest rates unchanged. However, there’s a possibility of a rate cut in the future.
Southern Company stock continues to look strong given its simple moving average levels. The stock is trading at $55.74, which is almost 4% and 14% above its 50-day and 200-day moving average levels. The large premium to both of these support levels suggests strength in the stock. The levels close to $53.5 and $48.7 will likely act as a support for Southern Company stock in the near future.
Previously, we discussed Southern Company’s “golden cross” pattern, which indicates a bullish signal, in the stock in December. Since then, the stock has risen ~20%.
Southern Company’s RSI (relative strength index) was at 68, which shows that it isn’t in the “overbought” or the “oversold” zone. A stock is considered “oversold” when its RSI drops below 30 and “overbought” when its RSI rises above 70. Extreme RSI values could suggest an impending reversal in the stock’s direction.