Duke energy shares continued to move lower on Friday, closing the US trading session at $64.78, and adding further pressure to the move lower. The sell off in the stock was given additional momentum following the news that one of Duke Energies subsidiary companies in Florida, Progress Energy Florida, has recently filed requests to reduce customer bills which if approved would see the average household utility bill fall by approximately 6% from the first billing cycle in the new year.
From a technical perspective, Hawkeye delivered an early entry signal to the short side, with a conservative trend Roadkill signal on the 21st August with the stock trading at $66.87, as it finally broke below a short term area of price congestion. Since then both the volume on the daily chart and the 3 day chart have remained firmly bearish, although it is important to note that the daily volumes are light. However this could merely be reflecting the summer period, and a general lack of volumes in all markets, as with the US labor day now ahead we can expect to see a return to more normal volumes as traders return from their summer holidays.
With a red Heatmap and red trend in both timeframes, the stock now looks set to break lower, and indeed on Friday Hawkeye delivered a further confirming signal with a volume Roadkill re-entry signal, suggesting that the current bearish trend has some way to go. The key level now is defined by the Hawkeye pivot in the $64 region, and if this is breached, then we can expect to see this stock move lower to test the $62 – $63 level in due course.
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