Ameren: Utilities as Down Market Hedge

NYSE:AEE   Ameren Corporation
Ameren is doing well, and a 15% earnings surprise last week helps. The utility sector is going to find some renewed interest as investors seek safe harbors to weather this trade war storm. Utilities are great defensive plays because they provide services to an inelastic demand, so they're not affecting by imports or tariffs, and people aren't suddenly going to stop needing electricity. Electric usage will also rise in the Summer months due to increased cooling costs, so Ameren is looking like a good play in the current conditions.

Technicals look good with MACD positive and pulling up on the histogram and the price starting to walk up the top Bollinger band . ADX doesn't show a strong trend, but DI+ is strongly outpacing DI- hinting that a rally is coming. RSI is above 50 and climbing, so there's room to get in before this gets overbought again.

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