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.