Moving averages

The Utilities Select Sector SPDR ETF (XLU), the representative of top utility stocks in the country, continued to rise. XLU is trading at $58.5, which is almost 4% and 7% above its 50-day and 200-day moving average levels, respectively. XLU crossed above its 200-day level in mid-January and has risen more than 10% since then. XLU’s 50-day moving average level close to ~$55.8 could act as a support in the short term.

XLU: Where Utility Stocks Might Go from Here

Exelon (EXC) stock is trading almost at its ten-year high. The stock is more than 4% and 11% above its 50-day and 200-day levels, respectively. NextEra Energy (NEE), the biggest utility by market cap, is trading near an all-time high. The stock is 5% and 10% above its 50-day and 200-day levels, respectively.

Relative strength index

The recent rally in utilities has pushed XLU into the overbought zone. XLU’s RSI was 69 at the closing last week. Utility stocks have been trading in the overbought zone for more than a month. NextEra Energy and Exelon are trading with their RSIs close to 75 levels.

Utilities (VPU) at large exhibited implied volatility levels around 12% last week—close to the 15-day average. The implied volatility represents investors’ nervousness. SPY had an implied volatility of 14% on March 22, which was higher than its 15-day average. NextEra Energy and Exelon had implied volatilities of ~14% last week.

Latest articles

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOG's shares surged 40% in intraday trading.