Above is a beautiful consolidation Ascending triangle chart pattern of the S & P 500 UTilities ETF XLU
- REWARD : It's currently trading at 31 and has a bullish target of 34 according to the pattern. So still seeing an upside of about 10 % .
- RISK : If it falls back into the triangle and closes below 30 it's time to close the trade or atleast prune it. So like a 3 % risk
- Definitely seeing a +ve Divergence wrt the MACD
- The Relative Strength wrt the S&P 500 which is the line showing in the bottom mmost tab is gradually rising with an uptrend slope confirming strength of XLU.
- The volume on UP days is far greater than that of downdays which is always encouraging .
- XLU yields a dividend of 4.5 % as of today which is pretty good for an ETF.
- The Weekly chart on the right also shows the bullish outlook and looks like it's going to retrace it's 2008 highs of upper 30's
- Above link shows the P & F chart of XLU
- The fact that it is above the bullish trendline , having a Bullish price objective of 35 are the key trends to look for any LONG ideas ....