Xcel Energy (XEL) Is Today's Roof Leaker Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Xcel Energy ( XEL) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Xcel Energy as such a stock due to the following factors:

  • XEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.0 million.
  • XEL has traded 352,963 shares today.
  • XEL is trading at 3.49 times the normal volume for the stock at this time of day.
  • XEL crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on XEL:

Xcel Energy Inc., through its subsidiaries, is engaged in the generation, purchase, transmission, distribution, and sale of electricity in the United States. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The stock currently has a dividend yield of 3.9%. XEL has a PE ratio of 15.8. Currently there are 3 analysts that rate Xcel Energy a buy, 1 analyst rates it a sell, and 9 rate it a hold.

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Trade-Ideas: Xcel Energy (XEL) Is Today's New Lifetime High Stock

Trade-Ideas: Xcel Energy (XEL) Is Today's New Lifetime High Stock