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PCG: Analyzing PG&E’s Chart Indicators

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PG&E trades in the “overbought” zone

PG&E (PCG) stock is trading in the “overbought” zone with its RSI (relative strength index) of 81. When the RSI level is above 70, it indicates that the stock is overbought. An RSI below 30 indicates that the stock is oversold. RSI levels at extremes suggest an imminent reversal in the stock’s reversal. PG&E is trading 18% above its 50-day and 7% below its 200-day moving average levels. The company’s 50-day level close to ~$20.0 might act as a support in the short term.

PG&E stock also witnessed higher volume on June 20. Almost 19 million shares exchanged hands on June 20—compared to its average daily trading volume of 8 million.

PG&E’s implied volatility levels peaked beyond 100% on June 20—compared to utilities’ average volatility of 13%. The implied volatility levels indicate investors’ anxiety.

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With the recent increase, PG&E stock is trading close to its levels in early 2019. Sempra Energy (SRE), the biggest utility stock by market cap in California, has risen 30% in 2019. Edison International (EIX) has risen 12%, while the Utilities Select Sector SPDR ETF (XLU), which represents the top utilities in the country, has risen more than 15% in 2019.

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