The Utilities SPDR (XLU) is consolidating at a potential support level and traders should watch the consolidation high for a breakout. First, notice how broken resistance and the Fibonacci retracements mark support in the 36-36 area. This is a good spot for a bounce, but a breakout is needed to signal an actual upturn because XLU could continue lower. A move above the June high and a
bullish Vortex cross would signal an upturn.
Click this image for a live chart.
Click this image for a live chart.
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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