Sunday, June 29, 2008

Utilities Sector Update for 06.29.2008

Monthly chart shows the December 2007 high was made with regular divergence on the cci indicator. Possible lower high being made with the May 2008 high.

Weekly chart better shows the topping action at the $42 area. There is a bearish gartley-type butterfly pattern in place at the .618 fib resistance level. The bearish gartley butterfly pattern suggests a lower low as the eventual target. One can also make the case for seeing a h&s reversal pattern in place also.

Daily chart shows that Thursday's gap down at the start of trading created a kicker signal, indicating that trader sentiment has drastically changed. Thursday and Friday's selling pressure took price decidedly down below the short term support and 200sma. Look for a test of the low and then new lows eventually.

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