• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

After Failing At 51, XLU’s N/T Path Of Least Resistance Down

By Kurt Osterberg · On April 11, 2018

Since bottoming at $47.37 early February, XLU ($50.13) has made higher lows, with the 50-day moving average flattish and the 10- and 20-day flattish to slightly rising. Encouraging if you are a bull, but at the same time, the $51 area continues to be a roadblock.

Last Friday, the ETF retreated after hitting $51. This is where the daily upper Bollinger band lies. After unsuccessfully trying to conquer that resistance several times, the ETF ended down Tuesday and is flat Wednesday with two hours of trading in.

Interestingly in the March 16-29 period when XLU rose 0.7 percent short interest dropped 20 percent (Chart 2). This was an opportunity for the bulls to force a squeeze, and it was wasted.

Near-term, the daily chart is overbought, and there is room for XLU to go lower. Remains to be seen if the 50-day ($49.65) gets defended. A two-month rising trend line is being tested (Chart 1).

The thesis behind a hypothetical trade initiated on January 9 did not quite work out. A January 26 52/51 bull put spread combined with a 52 short put eventually resulted in going long the underlying at $50.94. Worth exiting for a loss.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.