Utilities Look Like they want to Head Lower

Written by MrStockFox. Posted in Trade Ideas

For the better part of 2 months the Utilities sector has been consolidating in a side way consolidation.  Usually these flag patterns continue in the direction of the trend which is currently down.  Should the XLU break this support I would expect it could break all the way to the 40 area.  Any breakout to the upside of this consolidation would be bullish.

I did initiate a small position in SO a couple weeks ago.  Should it break the lower trendline I plan to hold what I currently own and look to add to my position at around 42.50 and again around the 40 level.

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