[Music] hello this is Patrick welcome to chart built wealth profitable investing with technical analysis well a big another big down day in the market today and I just wanted to go over utilities uh which have been uh having great days uh while Market has gone down but I think it's time to get off this uh excuse me to get off this bus so let's get into it this is a chart of xlu it's the utility ETF and here was the initial inverse Head and Shoulders that I talked about back in early April and suggested purchasing this let's call it at 55 I'm sorry 65 and the price projection based on this pattern was 76 and you can see that we're uh we hit 74 today so we according to the price projection we have a little bit further to go but you'll never get the top tick on any of these positions and as I explained here it's no longer a favorable reward to risk scenario so when we first bought this it was a 3 to1 reward to risk well now you have limited upside based on the pattern and you have potentially a lot of downside and you can also see we don't know yet for sure but this could be forming a negative Divergence uh which you know we had a negative Divergence back here in 20122 on utilities and saw a huge drop and didn't see these levels again until two years later now so uh again the reward to risk is no longer favorable here so I'm moving to a neutral position I'm certainly not shorting utilities I'm certainly but I'm not buying them okay so uh you know I've been selling on all these updates um you know this week up 4.15% has been a great time to be selling your gradually selling your utility position and I down now have it down under 1% and let's take a look at Southern Company this the stock I mentioned back in uh April when I went to a buy rating based on this symmetrical triangle these two converging blue trend lines which were a really nice two-year pattern approximately and this suggested a $90 price projection or 28% potential upside with a reward to risk scenario of 4 to one which is really attractive and um you can see we're at 88 currently so we're a couple ticks shy of the price projection and again I'm going to a neutral rating uh the the reward to risk is no longer favorable it's time to cash in which I've been doing it did sold a lot today up uh almost 6% on the day which is pretty incredible for utilities and uh anyway I wanted to let you know that uh the risk is to the downside at this point and thank you for watching I hope you will like and more importantly subscribe I think the content has been good and uh thank you for watching chart built wealth profitable investing with technical analysis have a great evening