XLU trade ideas
XLU rises after consolidation periodsUtilities are defensive and traditionally do well in summer, when risk stocks suffer from ‘Sell in May’. In the last six consolidations, which often start around May, the price moves up after the consolidation ends.
Overall, the ETF has followed a clear parallel channel for four years now, and it is affected much less by macro events.
Each consolidation has been followed by a rise of around 6.7% so an entry at 58 (.30 below current), with a stop of 56.50 (below the consolidation low and the lower current channel (in red, I have treated Xmas 2018 as an outlier), and a target of 62.50 (where the upper channel will be on Oct 31, traditionally the end of the summer season neatly gives a 3:1 trade to run for six months.
Not the most exciting of trades, but safer than most.
xlv + xle + xlu --- Low relative strength - China Deal???How would this look different if a Trade deal were imminent....
XLU - Short-term broadening formation pullbackXLU is in a broadening formation within a long-term bull channel. Finding support at the 50 day moving avg.
XLU possible meltdown to signal risk-on melt-on ala early 2018Think we could really melt down in XLU shortly, and that would result in a bit squeeze of indices like in 2018. Just hypothesis currently
XLU Bearish OutlookBear Case:
*Forming H&S
*Massive RSI Divergence
Bull Case:
*China
*** Looks like XLU might look to form a H&S, but based on how heavily the RSI has dropped, it might not even bother and just drop. In either case, Short the top of the Right Shoulder or a break of the neckline .... Let's talk about it! ***
XLU Utilities leading this bull run?With the market exploding upward since the end of Dec with V bottom and look at which sector is ready to go to all time highs.
I'm guess most traders don't see interest rates going up any time soon.
$XLU BearishNearing the end of this rising wedge, XLU daily candles last week are struggling to make any new highs. MACD curling down. This looks like a good short opportunity.
XLU - Risk vs Reward Assesment timeAt minimum, XLU looks to be ready to pull back. IF XLU is making the (b) wave, then (c) wave will take it all the way down. Either way, it's prudent to take profit and step aside.
Utilities are back in playDividend payers within the Utilities sector are outperforming the S&P after its fall from grace
due to the PG&E bankruptcy.
XLU ShortUtilities always take a hit with rising interest rates. Here we are in a downtrend and a wedge triangle forms and cannot get past long-term support which has now become resistance. Targets at both at recent low for a quick two pints and then at next LT support and Fib extension at 48.58, for another ~ 2-3 points
Short XLUXLU has formed a double top.
Utilities have been a flight to some degree of less risk. However Looking back to 2008 and 2000 utilities were hit just like most other equities.
I believe that utilities are going to be hit again within the next year.
* This information is not a recommendation to buy or sell. It is to be used for educational purposes only.
XLU Defensive in clear channelThe XLU (Utilities ETF) is a well-known defensive (succeeds in troubled economies, you have to buy their product) and has a very clear channel. My trade enters at the bottom of the channel and so allows for further market weakness. The price only matched the previous top last time, so I am playing safe with that top as a target, rather than going to the top of the channel.
XLU (Defensive) Still in ChannelXLU, the SPDR Utility Sector is well-known, high div paying defensive, and has not broken support like SPY as a whole. Let's play safe with a 1.6:1 trade, with stop below the lower tramline and target the confluence high of the bullish and moderate cases, as shown by the regular and dotted lines. Aggressive traders could set the stop at 53.75, reflecting the 52-55% pullback last time.
XLU A VERT BEARISH FUTURE AHEAD It looks like we now have a double top so there is now no where to hide what is coming other that the 10 year or cash going into 2019
XLU Head and shoulder pattern?Possible head and shoulder pattern
Invalidation if not breaking rising wedge
XLU Bearish Divergence PatternsAMEX:XLU seems to develop bearish divergences that push the price down towards this bullish trend line (in the purple). The bearish movement could take some time to develop. We could see more bullish movement in the short term.
XLU, Buy weaknessIn an environment of declining rate and stocks prices, Utilities are a sector who tend to outperformed. With 10 year US rate heading to 3,00% and stocks much lower, XLU can be a good bet against general index
