3 Utilities Near All Time Highs and Set Up to Go Higher

• Posted by Greg Harmon
• on October 20th, 2011

If the broad market is so strong then why is it that defensive stocks are making all time highs? Last night I profiled 4 healthcare companies that have strong charts, with 3 making new all time highs (there is a link to that article below). Tonight lets look at three companies in the utility sector that are set up to break higher and near all time highs.

American Electric Power, $AEP

American Electric Power, $AEP, is testing the resistance of a rising trendline for the fourth time since May. It is still about 5% off of it’s 2007 highs, but is at its highest levels in nearly 4 years. As it hits this resistance, which can also be viewed as the neckline of an Inverse Head and Shoulders the Relative Strength Index (RSI) is moving through 60 and the Moving Average Convergence Divergence (MACD) indicator is positive and looks to be growing again. All of the Simple Moving Averages are sloping higher. A bullish set up. If it breaks the resistance the target move on the Inverse Head and Shoulders is to at least 44.71 which would be a new high. If that was not enough it carries a 4.8% dividend as well.

Consolidated Edison, $ED

Consolidated Edison, $ED, is at new highs and breaking higher. As it moves through resistance of the Double Top at 58.20-58.60, the RSI is rising and the MACD is increasing. Both support further upside as do the rising SMA’s. It has a target of 63 on a Measured Move (MM) higher.

Hawaiian Electric Industries, $HE

Hawaiian Electric Industries, $HE, broke through a resistance area from 24.50 to 24.70 and is now consolidating over it. This also marks the neckline of an Inverse Head and Shoulders pattern with a target of at least 29.00. The Relative Strength Index (RSI) has held above the mid line since rising there in August and the MACD is positive. This has the highest dividend yield of the three at 5.00%.

Healthcare Debate – Higher or Lower

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