Denver, CO – (Stocksntrade) – 05/01/2014 – Pepco Holdings, Inc. (NYSE:POM) has seen a good uptrend right from the time it hit an intraday low of $18.32 in the beginning of January, 2014. The stock in yesterday market session witnessed a massive breakout on the back of massive volumes which is considered to be a very bullish indicator for the stock. The massive breakout in the stock saw the stock respect the earlier trend line breakout witnessed earlier in the week.
The momentum indicators for the stock which had been subdued even after the massive breakout witnessed in earlier trading sessions saw a sharp up move which makes us believe that the buy side momentum is very strong and here to stay. The relative strength index for Pepco Holdings, Inc. (NYSE:POM) though in the overbought area isn’t showing any signs of weakness or reversal and traders should remain bullish though have strict caution as an overbought relative strength index might turn around at any given time.
On the weekly charts of Pepco Holdings, Inc. (NYSE:POM) we see a similar story play out wherein a close above $21.61 intensified the buying interest in the stock as it was a breakout from previous weekly highs. The momentum indicators for the stock just like in the case of daily charts have seen a massive up move. The relative strength index for the stock though in the overbought area is showing no signs of fading or tapering and confirms our bullish stance on the stock.
(Figure): Daily chart for Pepco Holdings, Inc. (NYSE:POM)
Latest Buzz: Pepco Holdings, Inc. (NYSE:POM) has announced that it would be bought over by energy service provider Exelon for $6.83 billion to create a large gas and electric utility company in the mid-Atlantic. As per the deal, Exelon would pay $27.725/share to Pepco Shareholders. This news led to a massive breakout in the stock on the back of heavy volumes.