Last week, on October 3rd, I did a premium post called Bucking Bronco in which I emphatically suggested going long XLU, right on the heels of my super-successful XLU bearish call. Here’s a snippet:
I set the Fibonacci retracement as a target, which I have tinted below. I’d say this can be marked down as another winner! The red arrow marks my buy suggestion. Three trading days later, prices bunched through the trendline on an intraday basis and made a slightly lower low, but that day represented the key reversal. In other words, I didn’t get the exact low, but I sure was close.
Here is a longer view, which nicely illustrates how potent the Fibonacci has been with respect to the Utilities ETF in terms of resistance levels. Congratulations to premium members who made profits on this long position!
