XLU is the outperforming Sector

XLU – the Utilities Select Sector SPDR Fund – recently broke above the ascending triangle pattern we show with the blue lines in the chart. Ascending triangles are normally continuation patterns, so we expect the uptrend to resume after the break of the pattern.

Price itself has been moving in a bullish pattern between the 10-day exponential moving average and the upper Bollinger Band. The huge bearish candlestick of the last session, however, closed right above the upper triangle side.

Therefore, we will wait to see the following days’ price action to make sure whether the uptrend is in place or price will close within the triangle again.

At the same time, MACD is currently moving to positive territory and above its signal line.

Finally, XLU’s Relative Strength is moving up and above its 20-day exponential moving average, making XLU one of the best performing sectors.