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STOXX Europe 600 Utilities: a sector to watch

22. June 2019, by Mario V. Guffanti
Technical Analysis,  Update

Last year the European stock market was one of the least performing: the Stoxx 600 Index closed with a loss of more than -13%. The only STOXX 600 Super Sector survived with a modest loss of -1,7%, was the STOXX Europe 600 Utilities Index.

At the beginning of 2019 I wrote some articles suggesting to follow carefully this Supersector. In fact, despite the long-term trend was sideways, the prices and the oscillator were in a potential turning point. But it was also important to check the trend of relative strength.

Let's start by looking at the daily graph from the end of 2017.

20190621 01 Stoxx Utilities short term view

You can see that at the beginning of 2019 the price has broken the down trendline of a symmetrical triangle (a), and the 50-day moving average up crossed the 200-day moving average (b), confirming the price trend. In February we had a period of consolidation (c), and in March a new high (d).

My previous analysis was made in April...

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