Utilities in danger of breaking 9-year support line!

 

Utilities ETF XLU has had a rough go of it the past two months! Below compares XLU to the S&P 500 over the past year-

 

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Sometimes Utilities are viewed as interest-sensitive assets. XLU was keeping pace with the S&P over the past year (sometimes ahead) until mid-November last year, where they started heading south, backing off nearly 10% from highs.

Below looks at the chart of XLU over the past 18-years-

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The recent softness in XLU is testing 9-year rising support at (2) above. Support is support until broken.

If XLU breaks support at (2), selling pressure could take place in this sector and they could be sending a message that interest rates could be moving higher.

 

 

 

Chart pattern analysis with brief commentary:   

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Comments

chippers Jan 10, 2018 12:27 PM Permalink

Fine the charts say it is has gone down,  but what I want to know is where is the bottom?  The charts don't tell you that I suppose.