Don't Ignore This Chart!

Southern Co (SO) Looks Up

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Southern Co (SO) is a utility company with a pretty intriguing chart this week. 

THe SCTR got very low and is starting to move above 30, which is one style of trade I like. The Relative strength is clearly out of favor, so that is a major drawback. The price action has oscillated above and below the $48.50 level for the last year and this week closed back above it. 

What I like most about the chartis the Full Stochastics on a weekly chart getting into oversold and now bouncing back up. Both other times on this chart, that was a fantastic buy signal. While the MACD has not crossed its signal line, the histogram improved quite a bit this week which suggests the trend might be changing.

After such a bullish run into other sectors of the market for so long, it might be time for these defensive sectors to play more of a roll. With a sparkling yield of 4.6 %, a little payback comes with the stock. 

Good trading and enjoy the weekend.
Greg Schnell, CMT, MFTA.

 

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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