XLU: how the Fed's interest rate hike affected utility stocks

BATS:XLU   SPDR Select Sector Fund - Utilities
The stock market is currently experiencing the adverse consequences of the US Federal Reserve's decision to hike the interest rate, with the Public Services sector taking a particularly hard hit. Public services, being typically the last to be paid by citizens, compelled companies to rely on short-term loans during periods of low interest rates to cover cash shortfalls. However, the cost of servicing such loans has now significantly increased, leading to higher losses.

Today, our focus shifts to the XLU ETF chart, which is invested in utility stocks.

On the D1 timeframe, resistance has formed at 59.80, with support at 58.71, which was broken through yesterday. If quotes consolidate below this level, it is likely that the downward trend will continue.

On the H1 timeframe, the short-term target for the price decline is around 53.77, with the possibility of further declines to 51.70 in the medium term. The likelihood of price growth appears to be extremely low.

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