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May 9 Chart of the Day - The Utilities Select Sector SPDR Fund

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

The Utilities Select Sector SPDR Fund (XLU) seeks to provide investment results that deliver an effective representation of the utilities sector of the S&P 500 Index.

The Utilities Select Sector Index includes companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities.

The fund is making headlines this week because it has risen 10 of the past 13 weeks so we wanted to review the chart from a price action technical analysis perspective.

Monthly Chart 

XLU monthly price action technical analysis review

On the monthly chart we can see that after setting its $78.22 all time high (ATH) back in 2022 price fell dramatically and seemingly found a bottom and bounced around the $55 area.

With a recent series of higher highs and higher lows price has risen back up to the $70 area this week and may have its sights set on even higher.

Weekly Chart

XLU weekly price action technical analysis review

On the weekly chart we can see with much more clarity the recent up trend and the series of higher highs and higher lows.

Trading at $70.32 earlier today price may have an upcoming decision to make in the form of previous support/resistance sitting just below a bear Fibonacci 78.6% retracement level, and a previous support/resistance sitting just above the Fib level.

While it's not the last chance for the bears to step in, it's potentially an area of confluence that could create another higher high before deciding what to do next.

We've layered in Fibonacci levels in both directions to use as potential levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections. 

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