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Multiutilities At Channel Support

|Includes:AEE, Duke Energy Corporation (DUK)

Back in July I noticed the strength in this sector and thought it would be a buy on a decent pullback. I believe that pullback is here and a couple stocks I like in this sector are DUK and AEE. Watch the RSI 40 level to provide support. It could dip down a few points below 40, especially intraday, but this area provides a good reward/risk trade in a stable sector.

With the markets screaming higher and the Dow touching the 2012 highs, a pullback could be in short order and these stocks below should also serve as defensive stocks and rise should the markets correct at all. As for now any correction should be bought in the general markets, as I don't see any reason to suspect this is going to turn into anything to nasty.

Stocks: DUK, AEE