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
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After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.
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