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Chart Indicators: Which Utility Stock Looks Strong?

Vincent Kruger
Chart Indicators: Which Utility Stock Looks Strong?

How Top Utility Stocks Are Placed at the Beginning of 2019(Continued from Prior Part)## Chart indicatorsEven though utilities outperformed broader markets in 2018, the recent weakness is a concern. The Utilities Select Sector SPDR ETF (XLU), the representative of top utilities in the country, fell almost 10% in the second half of December. Let’s see where top utility stocks might go in the short term.NextEra Energy (NEE) is trading at $169.8—almost 4% below its 50-day simple moving average and marginally above its 200-day moving average level. The 200-day level close to $168.9 will likely be crucial support for NextEra Energy stock going forward. NextEra Energy’s RSI (relative strength index) is 33.## Southern Company stock is oversoldSouthern Company (SO) stock is trading in the “oversold” zone with its RSI below 30. RSI levels at extremes indicate an impending reversal in the stock’s direction. Southern Company is trading 5% and 4% below its 50-day and 200-day moving average levels, respectively. The fair discount to both of these levels indicates weakness in the stock.Recently, Duke Energy (DUK) and Dominion Energy (D) shares fell below the 50-day moving average, which suggests weakness in the stock. Duke Energy and Dominion Energy have an RSI close to 34, which indicates that they aren’t in the oversold or the overbought zone. Their respective 200-day moving average level might act as a support in the short term.Continue to Next PartBrowse this series on Market Realist: * Part 1 - How Top Utility Stocks Are Placed at the Beginning of 2019 * Part 2 - NEE, DUK, SO, and D: Comparing Top Utilities’ Total Returns * Part 3 - NEE, DUK, SO, and D: Analyzing Top Utilities’ Dividend Yield