April 20, 2018

Utilities (XLU)


After making a new intraday high on 1/27/15,  the Utilities (XLU) peaked and started a sharp decline which finally bottomed after losing roughly 10% and targeting a key support region which coincides with other previous support/resistance levels and main moving averages. If we look at the 60 minute chart we see that as price moved into this support region, it started to build strong positive divergence on the intraday chart which can be a tell that support will hold — at least initially. While the XLU has moved off the lows, we do not think it is out of the…