Next Rotation: Utilities

The rotation among sectors that has been moving the market higher is now finding some strength in the Utilities Sector and it is no surprise that one with a dividend near 5% is leading the charge. Take a look.

Firstenergy, $FE

Firstenergy, $FE, is testing resistance at the top of an ascending triangle at 45.50. As it reaches resistance the Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence Divergence (MACD) indicator is about to cross positive. These are bullish contributors. A break over 45.50 has a Measured move to 53, and with a 4.9% dividend, what is not to like.

Southern, $SO

Southern, $SO, is just a small step behind with a dividend yield of 4.3%. It has a been moving higher off of a base at 43.70 and has an RSI that held bullish through the pullback and is moving higher while the MACD is about to cross positive. Over 45.50 resistance triggers more upside.

Consolidated Edison, $ED

Consolidated Edison, $ED, made a lower low and a double bottom at 57 and is now rising with a bullish RSI about to break back over 50 and a MACD that is improving towards a positive cross. Resistance higher at 59.40 is still almost 3% away and a break above that brings y62 back into the picture. Don’t forget the 4.2% dividend yield while you wait.

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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.

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