Wall street traders are allocating capital to Southern Company (SO), an electric utilities energy conglomerate based in Georgia. SO is up over a dollar today and trading fairly in the middle of its 52-week range of $40.03-$46.81. Even still, a lot of long calls are coming across the tape from Wall Street.
SO has been trading in a bearish pattern this week and broke to the upside on the open this morning. Institutional order flow has been refocusing on the electricity and utility sectors, which may indicate a possible merger in the space. This speculation is likely what broke the trend for SO and has many investors now holding long positions. Bullish signals are coming from the intraday chart with SO trading well above the cloud on the fifteen-minute bar, and testing resistance on the daily chart. If Southern continues to find buyers and break resistance to the upside in the coming days, it could potentially make new highs.