SURPRISE:
The best performing sector in April was Utilities!
Yes, Utilities (XLU)!
*Select SPDR ETFs
Looking at the technical chart, Utilities have been in a long term downtrend…until this recent breakout:
After initially breaking out, price came back down into the downward channel on April 16th in what appeared to be a “failed breakout” move.
However, buyers came back in and eventually pushed price higher above the horizontal resistance area of the recent channel breakout highs and previous Dec.13th, 2023 highs of around $65.96.
Also, the good news for CSA members who are also Inner Circle Members is that our proprietary Market Rover (MR) software not only captured this trend change, but also a potential “trade” idea recently within the trend.
- Here you can see Utilities previously in a downtrend (red), moving to neutral/ changing (black), and then eventually to an uptrend (green).
- Also notice as price fell back into the channel on 4/16 in the technical chart above, the Market Rover software picked this up as well and flashed (black) – giving a heads up that the trend was potentially changing (breakout failing).
- As price in the chart resumed higher, the Market Rover alerted as well, going back into a (green) uptrend.
- In addition, the software also alerted to a potential “trade” idea within the trend on April 25th. (Of note, this alert happened after price overcame prior resistance levels as seen in the technical chart).
- Moving forward, one could look for a potential trade Target-1 price objective of around $68.92 and a potential Target-2 of around $70.26, along with recommended stop areas noted below as the Utilities trend continues.
The data doesn’t lie.
Even though utilities have a bad reputation, they made the right moves in the last month.
At the end of the day, what we THINK should happen doesn’t matter.
That’s why we work with hard data – and Market Rover helps us get it faster.
See you on the next one,
Serge & JB
