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The Southern Company - (SO) - May 5, 2023

American gas and electric utility provider The Southern Company (SO) shares entered the green favored zone at the end of April. It was in the Favored zone last October, but has seen a rechallenge of its previous levels moving up in relative strength and performance recently. It has moved up 21 spots in the SIA S&P 100 Index Report over the last month and 3 spots yesterday to be in the 23rd ranking currently. Since trading around lows of $62 in February, the Southern Company shares have staged an uptrend back up towards $73 now in May moving above its 50 day and 200 day moving averages. Above though, we can see some significant potential resistance levels from its strong run in the summer of 2022. The $75 level is the first one to keep an eye on as it approaches to see if it can move through to continue its uptrend.

The next significant level to keep an eye on is around the $79 level which is from its all-time highs and the highest move it made last summer. This could be its potential upside for SO right now in the short-term as a target. The Southern Company did beat on its Q1 Earnings at the end of April with Earnings per share of 79 cents over beating the consensus estimate of 71 cents.

The Southern Company (SO) has moved up strongly from a point and figure chart at 2% recapturing all of the pull-back from its 1st quarter and looking to rechallenge previous highs. It has moved up against its first resistance level at $74.37. A move through this level could see its all-time highs and significant resistance level come into play at $78.92.

To the downside, support can be found at $67.36 based on a three-box reversal. Further support can be found at $62.23 and around $60 as a result of previous moves from February and December of last year. It currently is in a Double Top point and figure chart signal and one more move up over its first resistance level would further confirm this pattern. With a bullish SMAX score of 9 out of 10, SO is exhibiting strength against the asset classes.

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