Still Don’t Own Any Utilities? You Are In Luck
- Posted by Greg Harmon
- on June 7th, 2012
If you have not heeded any of the advice about looking at buying Utilities stocks all is not lost for you. Many are starting to become overbought but for a longer term holder, looking at the weekly charts, there are 3 names that pay over a 4% dividend yield that are about to break out higher.
American Electric Power, $AEP
American Electric Power, $AEP, made a top in January and has been pulling back. It found support at the 50 week Simple Moving Average (SMA) and is now moving higher. A break over the previous resistance at 39.65 has resistance at the previous high at 40.98 and then free air. The Relative Strength Index (RSI) is turning back higher and the Moving Average Convergence Divergence (MACD) indicator crossed to positive after trending higher the last 2 months. Both support the break and run higher.
Dominion Resources, $D
Dominion Resources, $D, is just beginning to break out above the previous highs from January. It also has support from the rising and bullish RSI and a MACD that is positive and growing. I like the long white bullish candle forming this week. A close Friday over 52.45 is a good long entry signal.
First Energy, $FE
First Energy, $FE, is consolidating between 46.50 and 48.10 after a move higher from the 41-43 range. A break over 48.10 has a Measured Move to 53 and the combination of the RSI in bullish territory and rising, with a MACD that is positive and a long white candle for the week support that move starting.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Top Trade Ideas for the Week of May 20, 2013: The Best
- SPY Trends and Influencers May 18, 2013
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview May 17, 2013
- Dragonfly Capital Views Performance Through May 2013 Expiry
- Premium Earnings 5-17-13
- Which Way is Up?
- Cicso Kid Was a Friend of Mine
- Premium Earnings 5-16-13
- Lights Out for the Shiny Metal