With a big surge over the last three days, the Utilities SPDR (XLU) is breaking rim resistance from a cup-with-handle pattern. These bullish continuation patterns were popularized by William O'Neal, founder of Daily Graphs and IBD. Also notice that the July pullback looks like a falling flag.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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