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9/3/98 Dow Jones
Utilities weekly chart
Points to Watch: A head and
shoulders top (a bearish pattern) is forming in the weekly chart of the Dow Jones
utilities (1,2,3 blue circles on chart). Look for a weekly close below the neckline
around 273.85 for confirmation of pattern. Average has dropped decisively below its
displaced weighted moving average at 287.9. RSI showed divergence on head, both RSI and
MACD are in downtrends. Gann 1x3 line could offer support at 269. Look for a weekly close
beneath sell zone on chart (268-270) before shorting your favorite utility stock.
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Last modified: April 02, 2001
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