3 best utility stock charts
Utilities are heating up, and these three stocks have found strong support, creating attractive—and relatively safe—buying opportunities for income-minded investors.
- There is even stronger support in the $32-$32.50 area with the long-term uptrend, line b, at $31.60
- Weekly relative performance, or RS analysis, has completed a base formation, having moved above the resistance at line c. The RS is in a solid uptrend
- Weekly on-balance volume (OBV) showed strong accumulation early in the year before breaking out to the upside. It has now pulled back to its weighted moving average (WMA) but is well above trend line support (line e)
- Daily OBV (not shown) is positive and suggests that the correction is over
- XLU has near-term resistance at $33.64-$34 with long-term resistance from 2008 in the $36-$38 area
- The weekly chart shows that DUK has pulled back to retest the breakout level, line f, in the $18.20-$18.40 area
- The weekly uptrend, line g, is in the $17.70 area
- Weekly OBV is testing its uptrend, line h, and did confirm the recent highs
- Daily OBV (not shown) has just moved above its weighted moving average, which is positive
- There is initial resistance in the $19 area with long-term resistance from 2007 and 2008 in the $20.78-$21.30 area
- It has pulled back from its recent high of $40.87 and tested the 38.2% support at $39.20 for several days
- SO has held above the breakout level (line a), and the uptrend (line b) in the $39 area
- Daily RS analysis turned positive in early May when the bottom formation (lines c and d) was completed
- Daily OBV has pulled back to support at line e and turned higher. The longer-term volume analysis is also positive
- Near-term resistance for SO is at $40.40, and once above the May highs, there is no further resistance, as SO made a new all-time high in May.
- The weekly chart shows an upward-sloping trading channel that goes back to late 2010, as support at $19.20 has just been tested
- There is further support in the $18.45- $18.70 area
- Weekly OBV surged sharply in April, overcoming resistance at line h. It has held up very well on the correction
- Daily OBV (not shown) is still negative, though it has turned up
- The upper boundary of the trading channel (line f) is in the $20.80-$21 area
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.