uploads/2018/01/XLU-dma-5-1.jpg

XLU: Analyzing Utilities’ Chart Indicators

By

Updated

Moving averages

On January 26, 2018, the Utilities Select Sector SPDR ETF (XLU) was trading 4% and 5% below its 50-day and 200-day moving average levels, respectively. The weakness in XLU is underlined by the fair discount to both the key moving average levels. Its 50-day moving average level around $53.2 will likely act as a resistance for XLU in the short term. Currently, XLU is trading at $51.0.

Article continues below advertisement

Relative strength index

XLU is trading at an RSI (relative strength index) of 55.

The RSI is a momentum indicator made up of values between zero and 100. Movements below 30 are considered to be in the “oversold” zone. Movements above 70 are considered to be in the “overbought” zone. RSI values at extremes can hint at an imminent reversal in the stock’s direction.

Short interest

According to the latest report, the short interest in XLU increased 8% as of January 12, 2018. The total shorted shares in XLU were 49.2 million on December 29, 2017, while they grew to 52.9 million as of January 12, 2018. An increase in the short interest could suggest that more investors are expecting XLU to fall from its current price levels.

The short interest is the number of shares that are sold short and not covered back yet. The short interest measures investors’ anxiety.

To learn more about top utilities’ (VPU) (IDU) chart indicators, read Where Dominion Energy Stock Might Go from Here.

Advertisement

More From Market Realist