XLU has been on quite the tear of late. The being said, we have a big resistance zone ahead with the zone being defined as a 3 drives to a top sell pattern. If we get into the 'red zone' I would expect resistance. However, would WAIT for a weekly signal reversal candle (SRC). The SRC, in this case, would be when the weekly close goes below the 'low' of the candle that made the all time high. Conservative? Yes. Provides a little more risk from a stop? Yes. However, if correct, then this will be a short worth waiting on ...
As I've shown, these patterns can/do fail so if we get a weekly close above the 93 price point, then consider this pattern 'failed' and we will have to reassess and find targets higher.
Last, take note of the orange projections ...each time the .618, 1.0 (equality) and 1.618 projections were hit, price did react. The next orange projection is the square root of 5 or 2.236.
