Utilities Stocks Teetering on Historic Support
Chris Kimble | Mar 03, 2023 01:32PM ET
The Dow Jones Utility Average has enjoyed a 20-year bullish rising price trend.
But a recent multi-month sell-off has bulls on the ropes and wondering if the lights are about to go out on utilities.
Today’s chart is a long-term monthly chart of the Dow Jones Utility Average that captures this bullish trend, along with the recent decline.
As you can see, the Utes are currently testing triple support at (1), comprised of the 20-year rising wedge, 36-month moving average and the bottom of a newly formed descending triangle.
And considering the recent weakness, utilities bulls need to hold this support or risk a much bigger decline.
Should the Utes break below support at (1), they will also send a concerning message to the broader stock market. Stay tuned.
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