Morning Trend | Essential Utilities reduces volume to test support, is a short-term rebound window coming?
Essential Utilities (WTRG.US) has recently shown stable overall performance, but yesterday it repeatedly tested key support levels during intraday trading, with signs of stabilization gradually emerging as trading volume shrinks. Currently, the main upward trend line has not been effectively broken, and the atmosphere of cautious observation among foundational capital is gradually increasing. From the perspective of community trading sentiment, many short-term funds in the market have begun to pay attention to the "stop-loss rebound" opportunity. At present, the 5-day and 10-day moving averages have not yet formed a death cross, and the K-line is repeatedly testing the support strength in the area of high trading volume. It is worth noting that in the past three trading days, the active selling volume from the main force has significantly contracted, and combined with the gradually bottoming turnover rate, it indicates that capital divergence has begun to weaken, making it highly likely that we are approaching a turning point. On the news front, the utility sector has recently been disturbed by interest rate hike expectations, but overall elasticity is better than the broader market, and there are no significant signs of institutional exit from WTRG. The key going forward is whether the trading volume can follow through and break through the upper edge of the recent platform. If the volume breaks through the $29 resistance level during intraday trading, there may be a first wave of rebound capital support in the short term. If the volume cannot be sustained, be cautious of the possibility of a return to the $28 level after the observation sentiment heats up. Players accustomed to quick arbitrage should closely monitor the intraday capital flow. Overall, Essential Utilities is currently in a critical chip game area, and a short-term repair window is opening, but a strong reversal still requires further data verification. In terms of trading, it is recommended to test with light positions, control stop-losses, and withdraw promptly if important support levels are broken, waiting for clearer signals of main force entry before adding positions
Essential Utilities (WTRG.US) has shown stable overall performance recently, but yesterday it repeatedly tested key support levels during intraday trading, with signs of stabilization gradually emerging as trading volume decreased. Currently, the main upward trend line has not been effectively broken, and the atmosphere of cautious observation among foundational investors is gradually increasing. From the perspective of community trading sentiment, many short-term funds in the market have begun to pay attention to the "stop-loss rebound" opportunities. At present, the 5-day and 10-day moving averages have not yet formed a death cross, and the K-line is repeatedly testing the support strength in the area of concentrated trading volume. It is worth noting that in the past three trading days, the active selling volume from the main force has significantly contracted, and combined with the gradually bottoming turnover rate, it indicates that the divergence of funds has begun to weaken, making it highly likely that we are approaching a turning point.
From the news perspective, the utility sector has recently been disturbed by interest rate hike expectations, but overall elasticity is better than the market, and there are no significant signs of institutional exit from WTRG. The key going forward is whether the trading volume can follow up and break through the upper edge of the recent platform. If the volume breaks through the $29 resistance level during intraday trading, there may be a first wave of rebound funds. If the volume cannot be sustained, be cautious of the possibility of a return to the $28 level after the observation sentiment heats up, and players accustomed to quick arbitrage should closely monitor the intraday fund flow.
In summary, Essential Utilities is currently in a critical chip game area, and a short-term repair window is opening, but a strong reversal still requires further data verification. In trading, it is recommended to test with light positions, control stop-losses, and withdraw promptly if important support levels are broken, waiting for clearer signals of main force entry before increasing positions
