krugman25
Long

XLU - Bullish pennant getting ready to breakout for big run up!

AMEX:XLU   SELECT SECTOR SPDR TRUST AMEX UTILITIES SELECT INDEX
A bullish pennant forming with a potential for a large breakout to the upside. See chart for pattern and price targets.
Trade active: Opened a synthetic long split strike position. Short put at 52 and long call at 53. If the trade goes wrong the split will give me a little downside protection to minimize my losses. Profit target is 55.
Trade closed manually: Large bearish pinbar on daily so we may may see price rotate lower in the coming days. As a protective measure I have closed for a nice profit. I will consider re-entering if price drops and throws a new bullish price action signal.
Trade active: We got the pullback I was wanting to see with some bullish price action on the 4H charts so entering long again with a split strike long synthetic. Low risk/high reward setup.
Comment: Bee playing XLU like a fiddle. Bought in low, sold high off the bearish pinbar, bought back on yesterdays low, and now close to previous high. Ready to ride this pig higher.
Comment: Large bearish pinbar on the intraday. Closing position and locking in yet another 40-50 cent scalp. Overall have scalped about 1$ out of this. I will continue to play the game, if price drops back to the pennant and throws a bullish pinbar I will be buying back in again.
Trade closed manually
2 Hour Chart on XLU saw price break below 7/6/18 High of 53.29 with a gap down OPEN on 8/8.

Price should not have done that.

Price has re-entered PRIOR PRICE AREA which is Bearish,
creating what looks like a potential Head, left above in price, on a H+S Reversal Pattern. Much too early to tell.

However,in order to reverse the bearish short term damage to the XLU chart,
price now MUST get back above the 7/6 High of 53.29.
Failure to do so, would reinforce the bearish implications of today's gap down open.

DAILY RSI is still Above 50, which is Bullish,
Thus, XLU still has time to reverse, and break back out to the upside if that is your expectation on the trade.


THE_UNWIND

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That means we are in a early contraction phase. Next ETF to go up should be the financial services sector.
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krugman25 biggair
@biggair, i have a long XLF analysis if you havent seen it yet.
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Utilities going up means consumer staples going up too. Your trades are killer. ;)
+1 Reply
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