Shares in US utilities could open way to bigger rally
XLU•US utilities shares have risen nearly 9% this month after barely gaining on the year. A move above resistance near 439 could put 449 in view, while a fall below 419.36 could threaten support near 408.53 and lower.
1. Resistance near 439
The S&P 500 utilities sector index faces resistance around 435.53 to 439, with several past price levels and the 100-day moving average clustered in that range. A push above those levels would put the 200-day moving average near 449 in view.
2. Support below 419
Initial support is at 429.62 and 422.86, followed by the October 19 low of 419.36. If the index falls below 419.36, attention may shift to a price gap near 408.53 and a nearby Fibonacci retracement at 408.25; a break below that zone would put the late-September low of 396.77 and the 390-387 area in play.
