UTIL Utilities Weekly Chart Nearing Critical Support Levels

UTIL utilities weekly chart nearing two critical support levels; 399 and 394. For now, however, price appears to be holding the 400 level and higher. With the broad market selling today, dip buyers should be buying, so these levels of 402-403, at least the 399, should hold. The eye opener will be if the 399 is lost this week, if so, the broad market selling will accelerate far beyond even this negative day. On top of that, if the 50 week MA is lost, now at 393.4 and sloping up, so let's call it 394, the broad markets will go into free fall.

Think of the 399 level as a major alert where increased broad market selling occurs, and, the 394 represents where the broad markets have lost it, and the markets will be in free fall. That said, since the utilities typically lead the broad markets, the indexes should receive dip buying and head back up to reset themselves (especially since the RSI wants to see another matching high). At that time, in the days ahead, the utilities will line up to then move down again, and UTIL will take out the two levels above and that will bring the longer term extended selling into the broad markets for the weeks ahead.

Also of interest is that UTIL started the year at 404.99, or 405, today that level failed and currently the utilities are negative on the year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.