Utilities Are Ready to Go Higher

March 28, 2012

XLU (Utilities Sector ETF) is consolidating in an uptrend and prepares to take a direction.

Even the heikin-ashi chart (top pane) doesn’t offer enough clues about the sector intentions.

In this case we look at tools used by heikin-ashi technique to remove more noise from the price jungle.

SMA(3) is the short haDelta average.

Although we could use haDelta and its short average, we prefer the average together with its average (double smoothing).

As a result, the lower pane becomes self-explanatory:

  • haDelta-based indicators are in a falling channel with obvious support and resistance levels as confirmations
  • SMA(3) and its short average indicate a possible bullish crossing. It’s not there yet, so a confirmation is safer than an anticipation

Utilities Are Ready to Go Higher 3/27/2012 XLU

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