The Utilities sector, tracked by the XLU ETF, has failed several times to break through resistance.
It’s knocking at the door again, so is this time different?
The Average True Range for XLU on a daily chart is $3.41, according to the RoadMap software I use. That puts XLU at about $68.40 on a strong day, which is just above resistance and its 200-day moving average.
If it gets there, it will likely test the area for a few days, just like in the past.
If XLU ignores the area, that would tell me there’s a lot of volume flying to safety.
That would make XLU a good trade and a good indicator of more volatility to come in the broad markets like the S&P 500 and Nasdaq.
P.S. Ready to See My Top Play for the Rest of 2023?
I’m going live at 1 p.m. ET TODAY, Sept. 18, to reveal my No. 1 way to play the rest of 2023…
No matter which way the markets go!
There’s a lot of uncertainty right now… So I always advocate for having a plan in place to follow, no matter what happens around the world to affect stocks.
Join me at 1 o’clock and I’ll share my plan with everyone!