Ugly utilities breakdown and continuation on increasing volumeI think we could see 45.50 sooner than later
XLU trade ideas
$XLU Pullback Coming$XLU hit its 1.618 extension.
I see no reason to be long at this levels.
Pullback expected towards the $46-47 area.
pennies to thousands short term short head and shoulders may retrace to 50 ma or cloud double top cci and percent r at bottom money flow decreasing mad and stoc crossed
Utilities (XLU) are toppish, correction expected.The XLU has recentlly reached it's high of early 2015 near $50 which seems to offer strong resistance. A double top seems to be in process. Elliott waves count of 5 waves is completed, a correction seems to have started towards the $46.70/$45.35 area, The wave III should just have started, a fast drop is expected.
RSI (5) and MACD are showing beairhs divergence and the XLU-0.20% is trading far away from its 200 days SMA (at $44.30).
The bond market is also showing a similar exhaustion pattern.
Markets ready for a short ? The overal market is weakening and approaching a riskwise interresting level to participate in a potential leg down
with:
->the sp500 approaching the supplyline of a pot. downchannel
->xly approaching its resistance
->xlp on a break of the demandline , retesing the broken resistance
->xle trading at its supplyline
->xlf forming a pot. lower high
->xlv struggeling gaining new grounds to the upside
->xlk trading near its resistance
->xlu trading near its resistance
riskwise shorting the sectors close to its resistance like XLU, XLK
and the sectors at their supplylines like XLE would be the best bet...
especially XLE which is the weakest sector of them all , would be a good candidate to participate in a short play
Ether a double top or a historic new high moment for UtilitiesReally? We are really counting on Utilities to lead the market by making a historic new high?
Continuation towards bearish Bat completion? $XLU is no doubt one of the strongest sectors out there. The bullish setup from 41$ generated impressive rally in time where the markets suffered mostly losses.
Now, as sentiment starting to shift, we may see continuation move towards final target zone of the bullish move - Completion of Bat pattern near 49$
Two zones to monitor in $XLU:
1. 45$ - Currently support (we see that the price is bouncing on it for now.
2. 43-44$- Structure and the daily 200 MA line
Tomer, The MarketZone.net
Follow me on TradingView
Follow my blog - goo.gl
Subscribe to my mailing lists - goo.gl
XLUdownward movement based on 2 red heiken candles as well as downturn of RSI and MFI as well as MACD
XLU/SPY dont sell yet . is poised to continue and outperformyields of bonds will be even lower, right after the reliefe rally is over.
mabye more QE around the world ?
XLU/SPY Bottom Forming Why would investors search for yield in the Utilities market $XLU ?
Because, they are not able to find it in the broad market.
This chart is very troubling for US Equities.
$XLU Are Utilities Giving Us a Clue to the Broad Market?A break above the black channel could spell trouble for equities.
Bearish bat on XLUXLU is forming bearish BAT pattern. Watch that channel and D-point for possible downward action. Stops above X and no entry if it keep rising or news events disturb it. Targets eg. B-point and C-point or fib. ret. 38,2% and 61,8% of the CD-leg.
MACRO VIEW: XLU STRUGGLING TO GET BACK INTO MACRO UPTRENDSXLU - the SPDR utilities sector ETF is struggling to get back into macro uptrends, while showing no bias on short term.
On long term perspective the price is trading around upper 1st standard deviation from 5-year mean, which is a 5-year uptrend border. The price is also technically in 10-year uptrend, trading above the upper 1st standard deviation from 10-year mean.
Thus one can only say that XLU has restored its long term upward bias if it trades firmly back above 44.
On short term basis price is trading within 1st standard deviation from both 1-year and quarterly mean, showing no directional bias at the moment.
XLU LONGXLU has been one of the strongest sectors over the last month on anticipation of no rate hike.
It is breaking out but is still developing IMO as the rate hike is still in question
moreover it is up against the kumo cloud on the weekly. Resistance area is my target
XLU $44.16: Breaks below triangle support for further downsideXLU broke below a 7-week triangle consolidation support (as shown on the weekly chart), completing a bearish continuation pattern. Further losses risk 43.49 (March 23, 2015 weekly low) then 43.01 (March 9, 2015 weekly low) next. Below there would expose 41.40 (September 22, 2014 higher low). The 45.46 high (April 20, 2015) should cap near term bounces. Only a break above the latter would defer the downside and stabilize for 45.65 (March 16, 2015 high).
Outlook:
Short term: bearish
Long term: neutral
XLU - 10% from 200 SMA (Setup)Set an alert on Daily chart for PPO above 10% on XLU.
Look for a shorting opportunity.
XLU $44.57: Consolidates after falling wedge breakout; Remains nXLU rallied off the 43.02/43.09 minor double bottom to reach 45.63 (March 19. 2015 high) before consolidating. As the indicators are mixed, XLU is expected to remain range-bound near term. Clearing the 45.63 range resistance is needed to turn bullish and confirm basing for a move towards 46.59 initially. Back below 44.02 (March 18, 2015 low) would signal a retest on the 43.02/43.09 recent range support zone.
Outlook:
XLUAfter completing 1.618 and 1.13 Shark target, price was only able to reverse to .382 before reversing again and forming a right shoulder in the process. Extreme ext of Shark is 42.77 and HS tgt 39.76ish
