XLU: how the Fed's interest rate hike affected utility stocks
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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Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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.
—
Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.