Interest Rates Impact Utility Stocks, But We Focus on Trend, Momentum, and Volatility for Asymmetric Risk Reward
In analyzing the Utilities Select Sector Index for asymmetric risk-reward, it is showing signs of support at the channel’s lower boundary with neutral to slightly bearish momentum and moderate volatility. Monitoring the RSI for a break above 50 and observing price action at the channel’s boundary will help assess the potential for a sustained recovery or further decline.