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Utilities Retreat, But Their Run Is Not Yet Over

Published 03/19/2019, 01:34 PM
Updated 05/14/2017, 06:45 AM

The utilities sector ETF XLU has been on an amazing run higher since December 26, 2018. It should be noted that when interest rates decline, the utility stocks will generally move higher and that is exactly what has happened. Last December 26, the popular XLU traded as low as $50.81 a share before breaking out to new 52-week highs. On March 14, 2019, the ETF traded as high as $58.74 before staging a minor pullback. Today, the XLU is trading around the $57.55 level. Traders and investors can easily see that the trend is up on XLU and that another pullback in the ETF is a likely buying opportunity.

Daily Support

At this time, $55 looks like solid daily chart support – that's where the 50- and 100-day moving averages are currently. This level should be defended when initially tested. The only thing that could disrupt the XLU trend would be higher interest rates and that is highly unlikely at this point.
Utilities Select Sector SPDR ETF

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