XLU Utilities ETF (US: XLU) technicals indicate further upside after our report dated 20^th September has successfully rebound from the said support zone at US$62.86-US$63.70. We believe there is further upside:

1. The formation of the cup and handle formation has inched closer to a complete pattern after a bullish gap was observed breaking the bullish flag/handle.
2. The above mentioned bullish candle has also gapped above the Tenkan-Sen. Giving an additional boost to the bullish upside.
3. Ichimoku wave theory indicates that there will be one more “N” wave for the next 19 periods after the 1^st “N” wave has completed the 9-period day of change and 17-periods day of change for the 2^nd “N” wave.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*US$68.00 resistance level remains crucial. Should it fail to break after 4 consecutive periods, the bullish call on this report will be invalidated.

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CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line