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XLU breaks through price channel

In the last two months, XLU – the Utilities Select Sector SPDR Fund – has been moving in a relatively narrow range defined by the blue box, that is, between 57 and 59. It’s also worth mentioning that price is well confined between the Bollinger Bands for the same time period.

After the last time price touched the lower Bollinger Band, the orange circle, it moved above its 10- and 20-day exponential moving averages that have started sloping up. This can indicate the beginning of an uptrend, as the bulls seem to have decided to push price up.

This change in momentum has already been depicted in MACD, which has moved above its signal line after some time.

Just as important, XLU’s Relative Strength is currently moving above its 20-day exponential moving average, which by the way, is also sloping up.