New York, August 31st (TradersHuddle.com) – Shares of Utilities Select Sector SPDR Fund (NYSE:XLU) are trading very close to calculated resistance at $33.71 with the current price action closing at just $33.67 placing the stock near levels that make it difficult to buy.
Utilities Select Sector SPDR Fund (NYSE:XLU) seeks to provide investment results that correspond to the price and yield performance of the Utilities Select Sector of the S&P 500 Index. The Index includes companies from industries, such as electric utilities, multi-utilities, independent power producers and energy traders, and gas utilities. The Fund utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index.
Utilities Select Sector SPDR’s current stock range is defined by current calculated support defined at $29.45 and by the resistance level at $33.71, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don’t have a clear entry point for Utilities Select Sector SPDR, as the stock is well above support, however, as the stock pulls back towards $29.45 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $33.71 then traders will get an opportunity to enter Utilities Select Sector SPDR stock by establishing a position as the stock moves to a higher range.