Utilities are enjoying the AI orgy catapulting higher as advanced technology (artificial intelligence, blockchain, bitcoin mining, etc...) has high electricity and power requirements. Windmills and solar cells don't cut it; these technologies need real power.
The blue lines show that 950 is a key line in the sand for utes. Price is way above that at 1018. The blue bars show an inverted head and shoulders (H&S) pattern with head at 8 hundo, and neckline at 950. That is 150 difference so the breakout above 950 targets 1100. Price hit 1037. That is close enough for government work.
The light blue lines show a 2-leg bull flag, or pennant if you prefer, with the first leg from 8 hundo to 950, that is 150 difference. The sideways to sideways lower consolidation occurs (flag) and then price starts the second leg from 9 hundo so 1050 is the upside target. That is close enough for government work.
The chart patterns have pretty much played out and done their job. Price makes a new high with the histogram, stochastics, and money flow in negative divergence and the RSI and stoch's overbot. These are bearish indications but note that the RSI and MACD remain long and strong with fuel in their tanks to take price to higher highs still yet on the weekly basis.
Thus, utes need a couple more weeks to play out for universal neggie d to form to be able to call the top in the weekly basis that would begin a multi-week down move. In a couple weeks, utes should set up for a short; you have to wait for neggie d to form across all indicators so you know the top is in.
Keystone has no plays long or short in utilities right now but will be looking to short utes going forward, maybe starting in a couple weeks. The charts will tell you when the neggie d forms. Utes will probably pull back and be soggy in the week ahead but they will likely come back up for a slightly higher high after that so no use trading the utes until they set up properly for the extended multi-week short.
The current move down in the US stock market will likely not lead to the big -20% to -80% flush in US stocks that is likely coming our way over the next couple years. Utes usually lead the way down or are coincidental with the down move but they are rallying now as the stock market slides lower. This is odd behavior and only due to the need for power requirements due to the AI hype.
When the utes roll over and lead lower, and then if stocks roll over as well, that is going to lead to the huge painful move lower so the utes may be hinting now that the huge stock market carnage and Wall Street bloodbath may not begin in earnest for another few weeks. Utes should be on your short watch list but wait until you see the whites of their eyes (universal neggie d across all chart indicators). This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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