Morning Thread

Gator's Chart of the Day: EXC

The talking heads remarked about the narrow trading range of the broader market on Monday.  Perhaps it should be no surprise that the stodgy old utilities sector was the strong performer.  One of the charts that caught my eye is EXC.

The stock has been in a volatility squeeze with Bollinger band width just 3.1% of 20 day simple moving average.  It bounced from the lower band on Friday and popped through the upper band today on very high volume and smacked into the 50 day sma closing just below it.  With a short ratio of 6 and a dividend yield of 5.25% there could be a short squeeze just getting started.  Either another move through the 50 day or a grind sideways for a couple of days allowing  the 50 day to move beneath the price should provide some support with the dividend helping.   The stock should go ex-dividend in early May.