| CenterPoint Energy is a public utility holding company. Co.'s operating subsidiaries own and operate electric transmission, distribution and generation and natural gas distribution facilities, and provide energy performance contracting and sustainable infrastructure services. Co.'s reportable segments are: Electric, which includes Co.'s subsidiary, CenterPoint Energy Houston Electric, LLC, a transmission and distribution electric utility that operates wholly within the state of Texas; and Natural Gas, which engages in regulated intrastate natural gas sales and natural gas transportation and storage for residential, commercial, industrial and transportation customers. |
When researching a stock like CenterPoint Energy, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CNP Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CNP stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CNP 200 day moving average ("CNP 200 DMA"), while one of the most popular "shorter look-backs" is the CNP 50 day moving average ("CNP 50 DMA"). A chart showing both of these popular moving averages is shown on this page for CenterPoint Energy. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CNP 200 DMA and the CNP 50 DMA, we get a moving average convergence divergence indicator ("CNP MACD"). The CNP MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart).