As of Aug 6, 2024, two stocks in the utilities sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
WEC Energy Group Inc (NYSE:WEC)
- On July 31, WEC Energ posted better-than-expected quarterly earnings. "Despite the warmest winter on record, we're delivering solid results, and we're firmly on track for a strong 2024," said Scott Lauber, president and CEO. "We're focused on the fundamentals of our business — financial discipline, customer satisfaction and operating efficiency." The company's stock gained around 13% over the past month and has a 52-week high of $92.23.
- RSI Value: 70.14
- WEC Price Action: Shares of WEC Energy fell 2.2% to close at $88.19 on Monday.
Consolidated Edison, Inc. (NYSE:ED)
- On Aug. 1, Consolidated Edison posted stronger-than-expected quarterly results. "We are proud that our regulator's annual report on utility performance once again showed that we provide customers with the most reliable electric service in the state," said Tim Cawley, the chairman and CEO of Con Edison. The company's stock gained around 14% over the past month and has a 52-week high of $105.99.
- RSI Value: 71.14
- ED Price Action: Shares of Consolidated Edison fell 1.1% to close at $100.70 on Monday.
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