Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Utilities Should Experience Huge Move When This Pattern Is Resolved

By Chris KimbleStock MarketsFeb 22, 2023 20:12
uk.investing.com/analysis/utilities-should-experience-huge-move-when-this-pattern-is-resolved-200561845
Utilities Should Experience Huge Move When This Pattern Is Resolved
By Chris Kimble   |  Feb 22, 2023 20:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
DJU
-0.05%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PTRN
-4.55%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Utilities stocks have been in a long-term uptrend over the last 20 years.

This tremendous trend can be seen in the monthly chart of the Dow Jones Utilities Index below.

DJU Monthly Chart
DJU Monthly Chart

Note, however, that the rising trend channel is quite wide. And within this wide trend channel, there is a narrower 14-year rising trend channel that has formed. This is creating a tightening pattern with resistance overhead and rising support just below (see arrow).

To put it bluntly, there is not much wiggle room for the Utes. Something has to give.

In my humble opinion, should the Utilities Index break below this narrowing 14-year rising support, it would send a bearish message to stocks.

There’s a lot of room to the downside to the bottom of the 20-year channel. Yikes! Stay tuned.

Utilities Should Experience Huge Move When This Pattern Is Resolved
 

Related Articles

Utilities Should Experience Huge Move When This Pattern Is Resolved

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email