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XLU: Where Utilities Might Go in the Short Term

Vincent Kruger
XLU: Where Utilities Might Go in the Short Term

Let’s see how utility stocks might trade this week given market participants’ anticipation for the rate hike. The Utilities Select Sector SPDR ETF (XLU) closed at $56.82 last week—almost 4% and 8% above its 50-day and 200-day moving average levels, respectively. The premium to both of the support levels highlights the strength in XLU. The moving average levels around $54.7 and $52.3 could act as a support for XLU in the short term.