NFTRH+; Utilities

This post is being sent to the entire list (as opposed to NFTRH+ email opt-ins) because I need to check the ‘+’ list for accuracy before using it, and have not had time thus far.  Also, a play on the Utes is a play on interest rates, which is a macro indicator.

The daily chart of XLU shows a clear breakout above the August and October highs.  The breakout is being tested now, and that test may or may not be complete.  If you have a positive view of Treasury bonds (i.e. a risk ‘off’ view) then you’d probably have a similar view on the Utilities.  The chart does not care about any of that.  It only cares about the break above 45 and the target of 50.

xlu daily chart

Buy Target:  45-46

Sell Target:  50

Stop Loss:  A loss of the breakout line at 45 (strict) or below 44 (more lenient), which has more support and the SMA 50.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.