On March 10th, there was a significant pullback that wiped away all the gains of 2015 for the S&P 500 and the Dow Jones Industrial Average. In light of this event, we are focused on more bearish stocks for our DailyPlay. We have therefore chosen Southern Company (SO).
SO is included in the Utilities Sector (XLU) which has experienced a 5.81% move lower over the past month. Both trend indicators are bearish and were rejected at the $43.65 resistance level.
Southern Company is bearish on both the short-term and long-term trend indicators as it crossed below its $44.72 support level a few days ago. After coming back to test that level, SO has moved lower.
We are setting a stop loss at $47.00, as a move above this level will invalidate our analysis.