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Benzinga
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Top 3 Utilities Stocks You May Want To Dump In February

1. Utilities sector shows overbought signals, indicating potential momentum concerns. 2. WEC Energy's stock rose 5% but reported disappointing earnings on Feb. 4. 3. Alliant Energy outperforming expectations with 7% gain and an RSI of 74.9. 4. Avista's stock increased 8% but has mixed quarterly results; RSI at 71.8. 5. Investors may need to reassess momentum strategies for these stocks.

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FAQ

Why Neutral?

Mixed earnings reports and overbought indicators suggest caution in the utilities sector. Historical trends show that high RSI can precede pullbacks.

How important is it?

The article highlights overbought conditions in utilities, a sector heavily weighted in the S&P 500, influencing investor sentiment.

Why Short Term?

Investors may react quickly to overbought signals, influencing short-term price action. Similar past instances in utilities saw quick sell-offs.

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