👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Is It Time for Utilities Stocks to Stop Stinking up the Joint?

Published 10/18/2023, 02:55 PM
US500
-
XLU
-

It’s been a tough environment for the Utilities Sector.

The ETF Utilities Select Sector SPDR® Fund (NYSE:XLU) has underperformed for months and really stunk it up in recent weeks.XLU-Weekly Chart
Looking at the chart below, you can see that XLU declined 19% in 2020, tagging its uptrend line at (1) before rallying sharply. Fast forward to today and we can see that XLU declined nearly 15% at (2) while testing its rising trend line and lateral support at (3).

The decline looks to be a bullish setup as long as XLU stays above support at (3). Are stinky Utilities ready to reverse higher?

If Utilities break through support on the downside, $XLU sends a negative message to the S&P 500.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.