Currently, most American shares remain overbought. Many investors have already recorded profits on medium-term transactions, fearing the reversal. Perhaps the utility sector is now one of the most attractive, namely, we are talking about WEC Energy Group Inc (NYSE: WEC), XCEL Energy Inc (NASDAQ: XEL), Dominion Energy Inc (NYSE: D). These companies are engaged in the production, distribution, sale and transportation of electricity. Refer to the "Communal / Electric Power Industry" sector.
Below I will try to justify my position.
Let's start with WEC ENERGY GROUP INC.
On weekly schedule, we see a clear upward trend. The last correction was deep, but it did not violate the trend structure. Last week, the campaign made the so-called "Kangaroo Tail", putting the tail down and closing almost under the very High. Typically, traders who see such a figure traded against this tail, that is, open a long position. The MACD histogram fell deep enough and began to grow. Occilators are traded in the oversold zone. Of the minuses: I would like to see that the fall on the weekly schedule was stopped, and the action did not update the new minimum.
Let's go to the daytime chart. We see the double bottom, where the second bottom is lower than the first, and a powerful bullish divergence of the MACD histogram. Stocastic traded a very long time in the zone of oversold, and he definitely time to grow that he, in fact, began to do. If you decide to trade exactly this valuable paper, please note that there will be a report soon - this can provoke an increase in volatility.
XCEL ENERGY looks absolutely similar. In the shares of Dominion Energy, there is not so clear ascending trend as the two previous ones - the last High did not finish approximately 40 cents on November 9, 2020.
Despite the minus voiced by me (the lack of a fall of falling on a weekly schedule), I would have looked at the promotions to start a set of position. Do not forget about diversification. You should not collect a portfolio from the securities of the same sector.
The article is familiarized. The author of the article is not responsible for damages as a result of the accomplishment of trade transactions.
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