American gas and electric utility provider The Southern Company (SO) shares entered the green favored zone for the first time since a long haul within the red unfavored zone. SO shares sat in the red unfavored zone of the SIA S&P 100 Index Report from March of 2020 for 2 years until March of this year when they entered back into the yellow neutral zone. Moving to the green favored zone on April 14th price has been range bound until last week when a break out of all time highs helped move SO into the 11th spot within the report.
The first half of June saw shares decline almost 14% before bottoming out and running back up to the all time highs of $76.53. On July 29th shares closed the day out making a new all time high and since have retested this area and made yet another all time high after yesterdays close.
Initial upside resistance based on the daily 100% FIB extensions is $80.31 and above that at the 161.8% FIB is $89.87. Initial support still sits at the tested breakout area of $76.00 and below that at $72.50 prior resistance.
After a large 14% rapid decline in the month of May, The Southern Company (SO) shares have come roaring back recovering the highs and taking them out last week. This can be seen in the 1% point and figure chart where it shows a confirmed double top breakout pattern.
Even though new all time highs have been made be cautious that price is currently approaching its initial resistance of $80.00 and that a three box reversal may occur before a further move higher based on past horizontal and vertical counts. The 3-box reversal support sits at $73.66 and below that there is support at $65.37. Higher resistance above if prices continue to move up is around $87.23.
With a perfect bullish SMAX score of 10, SO is exhibiting strength against the asset classes.
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