XLU (Utilities ETF) will be added as an Active Long Swing Trade here in anticipate of a breakout above this bullish falling wedge pattern as prices approach support on the daily time frame while the utilities stocks are at rarely seen oversold levels.

The sole price target for this trade is 52.54. Due to the relatively low volatility/risk associated with utility stocks coupled with the fact this is only intended as a quick “oversold bounce off support” trade with a relatively small gain/loss potential, the suggested beta-adjusted position size for this trade is 2.0 (i.e. – 2x a typical position size).

The gain potential (unadjusted) on this trade is  2½% which translates into a 5% gain potential when accounting for the oversized position. The stop was calculated using a 3:1 R/R (i.e.- 1 unit of loss risked per 3 units of profit potential). One could also use normal (1.0) position size of UPW, the 2x bullish utilities ETF, in lieu of XLU although UPW is not a liquid as XLU & as such, the spreads are currently about 10 cents vs. 1 cent on XLU.