Score 9.1 (out of 10): UTILITIES SECTOR SPDR sets up for +6.2% rally in 3 months

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What’s Going On Here?

There might be a ‘4-month’ cycle in place for the Utility sector as the previous shorter term lows were all 4 months apart: Feb 2022, Oct 2021, June 2021 and Feb 2021. Nevertheless, the data indicates that the next few months could be promising.

Why Now?

UTILITIES SELECT SECTOR SPDR has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, UTILITIES SELECT SECTOR SPDR shares had a median return of +6.2%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for UTILITIES SELECT SECTOR SPDR received a high score of 9.1 (out of 10). This insight was generated on 2022-February-3 with last price of 69.03.

What’s This Company About?

UTILITIES SELECT SECTOR SPDR is in the Sector Fund-Utility business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: XLU US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 73.31 (+6.2%) has been reached. Based on UTILITIES SELECT SECTOR SPDR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 66.53 (last price at 69.03), which is equivalent to a -3.6% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

6.9% (October-2021), 5.2% (May-2021), 8.2% (March-2021), 3.7% (December-2020), 5.6% (September-2020), 12% (July-2020), -2.6% (March- 2020), 11.9% (November-2019), 3.5% (August-2019), 6.8% (May-2019).

Historical Chart:

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Summary:

NameUTILITIES SELECT SECTOR SPDR
ViewUp
Star (1 to 10)9.1
Target+6.2%
Time3 months
Hit Rate90%

Popular Insights:

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