Utilities Should Experience Huge Move When This Pattern Is Resolved
Chris Kimble | Feb 22, 2023 21:12
Utilities stocks have been in a long-term uptrend over the last 20 years.
This tremendous trend can be seen in the monthly chart of the Dow Jones Utilities Index below.
Note, however, that the rising trend channel is quite wide. And within this wide trend channel, there is a narrower 14-year rising trend channel that has formed. This is creating a tightening pattern with resistance overhead and rising support just below (see arrow).
To put it bluntly, there is not much wiggle room for the Utes. Something has to give.
In my humble opinion, should the Utilities Index break below this narrowing 14-year rising support, it would send a bearish message to stocks.
There’s a lot of room to the downside to the bottom of the 20-year channel. Yikes! Stay tuned.
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