Southern Co (SO) was raised to a fundamental "buy" at Mizuho Securities here on Thursday with a price target of $77. Let's check and see if the charts of this big utility company are aligned with the fundamental story.
In this daily bar chart of SO, below, I can see that prices made lows in mid-October and early March. A bounce topped out in late December/early January and now prices are pushing up through this prior high. SO trades above the rising 50-day moving average line and the rising 200-day moving average line too. The On-Balance-Volume (OBV) line has been neutral for the past year but shows improvement from early March. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed toward a possible take profit sell signal.
In this weekly Japanese candlestick chart of SO, below, I can see promising clues. Prices have been finding buying interest (support) around $64 for more than a year now. Prices trade above the 40-week moving average line. Trading volume has been more active since early 2022. The OBV line has moved higher the past three years. The MACD oscillator is ready to cross above the zero line for an outright buy signal.
In this daily Point and Figure chart of SO, below, I can see an upside breakout at $73 and a potential price target in the $86 area.
In this weekly Point and Figure chart of SO, below, I see a potential longer-term price target in the $95 area.
Bottom line strategy: Traders could go long SO at current levels risking to $69. My price targets for now are $80 and then $86.
