Alan Farley
This is a segment of a column that was originally published on RealMoney on May 1 at 12 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
For more information about subscribing to RealMoney, please click here.The utilities sector has been an outstanding performer in recent weeks. This is confirmed by the SPDR Select Sector Utilities ETF (XLU Quote - Cramer on XLU - Stock Picks), which is currently trading at an all-time high after breaking above February resistance at 40.30. The sharp move following the breakout didn't offer good entry points, so the current downturn is relatively good news. Weakening relative-strength indicators predict this stock could pull back for a few weeks in order to consolidate its recent gains. An orderly decline to breakout support near 40 would be a good place, and price, to get on board for a renewed uptrend that presses above the recent high and heads into the mid 40s. (Please see chart below.)
Click here to see more of Alan's ETF charts. If you'd like to read a primer on technical analysis, please click here.
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