Morning Trend | Essential Utilities returns with increased volume, how long can the defensive market last?
Essential Utilities (WTRG.US) has recently shown some 'story' in the market—on November 28th, the closing volume increased moderately, attracting some keen-eyed funds attempting to 'position early.' The weighted water sector has demonstrated strong defensive characteristics in the volatile market, and discussions have begun in the community about whether defensive main lines can make waves against the trend. In comparison over the past three days, WTRG has climbed above the 60-day moving average, becoming a focal point for technical analysts, with a budding bullish atmosphere. Market risk aversion has not yet dissipated, but the overall protective actions are relatively mild, and the main players are not aggressive in 'shearing sheep,' making 'slow and steady' a true reflection of the market. There have been no explosive news in the water industry this week, but the stability premium has encouraged long-term funds to return. Actual market feedback shows incremental buying is gradually following, but the intraday fluctuations have noticeably increased, and the atmosphere of indiscriminate buying without direction has not yet emerged. The intraday rallies are mainly driven by low-buying follow-up, and the high-level support needs to be tested. Short-term traders are more focused on volume dynamics and the 'invisible actions' of intraday limit orders. It is worth noting that if the market suddenly changes or if the volume shrinks sharply, WTRG's upward momentum could easily stall or even face a sharp reversal. Once the chips of defensive stocks loosen, they can easily shift from the most stable to the most 'sudden kill.' It is recommended to closely monitor key intraday buying points and unusual order positions, and be prepared for timely profit-taking and risk control. Overall, there are short-term opportunities, but whether they can sustain an upward trend depends on whether the main players are supportive, with a focus on steady trading
Essential Utilities (WTRG.US) has quietly developed a bit of a 'story' in recent days — on November 28th, the closing price saw a moderate increase in trading volume, attracting some sharp-eyed funds attempting to 'position themselves early.' The weighted water sector has shown significant anti-dip properties amid the market's fluctuations, and discussions have begun in the community about whether defensive main lines can make waves against the trend.
In a horizontal comparison over the past three days, WTRG has climbed above the 60-day moving average, becoming a focal point for technical analysts, with a budding bullish atmosphere. Market risk aversion has not yet dissipated, but the overall protective actions are relatively mild, with the main players not being aggressive in 'shearing the sheep,' making the market's reality one of "slow and steady growth." The water industry has not seen any explosive news this week, but the stability premium has encouraged long-term funds to flow back in.
Actual market feedback shows that incremental buying is gradually following, but the intraday fluctuations have noticeably increased, and the chaotic atmosphere of funds scrambling for shares without direction has not yet emerged. The intraday rallies are mainly driven by low-buying following the trend, and the high-level acceptance needs to be tested. Short-term traders are more focused on volume dynamics and the "invisible actions" of intraday limit orders.
It is worth noting that if the market suddenly changes direction or if the volume shrinks sharply, WTRG's upward momentum could easily stall midway or even face a sharp reversal. Once the chips of defensive stocks loosen, they can quickly turn from the most stable to the most 'sudden kill.' It is advisable to keep an eye on key intraday buying points and unusual order positions, and to be prepared for timely profit-taking and risk control. Overall, there are short-term opportunities, but whether they can sustain an upward trend depends on whether the main players are supportive, with a focus on steady trading
