Southern stock: buy or sell
Jul 29th, 2021
Southern stock brief
- Southern closed on Wednesday at $63.99 (-0.85%) prior to presenting financial results on Thursday
- Southern released its financial report on Thursday
- From the chart point view, price is drawing an scaled downtrend since last May with lower tops and lower bottoms. shares price lost a -3.43% since the downtrend started.
- The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.
Should I buy Southern stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SO stock a buy?
In the current situation of Southern there is just one buy setup eligible:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't have upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Price is now at 4.31% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $66.75. The stop loss would be ordered at $60.08
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$66.75||$60.08||10.00%|
Should I sell Southern stock?
"To sell or not to sell", if you are holding Southern shares?. Trading strategies allow us to avoid rash decisions based on our sentiments or the buzz that surrounds the market. Our trading system selects very simple setups to guide us on when is the best time to sell our shares. Be aware that these setups should not be used for shorting Southern stock
A guiding principle is that you should not keep a trading operation that results in losses greater than those expected at the time of purchase. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Southern stock?
Currently, Southern stock doesn't match any of our preferred sell setups, so if you hold Southern shares and your operation is in profit probably is not time to sell now
In the previous month we couldn't find any rating for Southern
Southern stock analysis
Southern accumulates a selloff of -3.43% since its latest top last May at $66.26. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 2 consecutive lower tops.
Supports and resistances
The current resistance levels are:
The current supports are:
Since the price surpassed the upper band on Tuesday, the price sliced by 1.30%. The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks
Relative strength index
The has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really serving to help us make any decisions.
Southern stock price history
Southern started trading on Dec 31st, 1981 priced at $0.33 per share1. Since then, SO stock has risen by 19,290.91%, with an average of 494.64% per year. An investment of $1,000USD on Dec 1981 would have a value of $193,909.09 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Southern stock
Nobody can predict how much a stock will be priced tomorrow. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.
The following table shows the price target published by analysts over the last 30 days. Again, these targets are not direct recommendations for small traders and must not be trusted blindly.
We don't have any target price published in the previous 4 weeks for Southern.
Earnings and financials
Shareholders event was hosted by Southern ($SO) on Thursday after releasing the financial report.In contrast, the EPS for the same quarter last year was $0.78, so posted EPS is -100.00%. Looking at revenue, figures exploded a 17.78% compared to $50.2B same quarter 12 months ago.
Southern ($SO) will host the earnings call next October.
Disclaimer:The thoughts published in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the specific positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for general educational reasons only
|Wednesday, July 28th, 2021|
|Day range||$63.55 - $64.71|
|Average true range||$1.12|
|50d mov avg||$62.91|
|100d mov avg||$62.76|
|200d mov avg||$60.77|
|Earnings date||October 27th, 2021|