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Southern Company Stock: Is There More Weakness Brewing?

Vincent Kruger
Southern Company Stock: Is There More Weakness Brewing?

Southern Company (SO), the second-largest regulated utility in the country and the top-yielding stock among the S&P 500 Utilities, rose 5% in October and outperformed broader utilities (XLU) (IDU). Currently, the stock is trading at $44.97, which is 1% above its 50-day moving average and marginally above its 200-day moving average level. Southern Company’s 50-day moving average level crossing below its 200-day moving average could be termed as a “death cross,” which technical analysts consider to be a bearish signal. Southern Company’s RSI (relative strength index) is at 67, which is approaching the “overbought” zone.